Knowing your contribution limits is important. If you can afford it, you should maximize your 401(k) contribution every year. Check out the article I wrote on my About.com Retirement site about this year’s 401(k) contribution limits.
You: Why are you talking about IRA’s now?
What do you mean?
You: It’s the dog days of summer.
You: April is over, Michael.
So it is.
You: Most people only concern themselves, or in your case write about, IRAs during April. Why is that, anyway?
Because the due date for contributing to an IRA for the previous tax year is [...]
Over at the Retirement Planning site at About.com, I just posted an article about the best kind of tax deductions: those that come from saving.
Think about it. Most tax deductions require you to spend money in order to obtain the deduction. In my practice, the most common and largest deductions are:
state and local income taxes
One of my relatives recently was charged a substantial fee for rolling his 401(k) plan out to an IRA. In my opinion, that’s total nonsense, even if it’s disclosed. It’s the equivalent of an “account closing fee.” Can you imagine?
You: I’d like to close my account.
Bank: I see you have $100 in your account so [...]
Approximately half of all people cash out their retirement plan when they switch jobs.
You: Well, I wasn’t going to leave my retirement plan at my old company either. My boss was a real jerk.
I don’t know your boss, but –
You: He was a jerk. I jut told you that. Pay attention.
We’ve all had bosses who–
Today, I’m featuring a quick compilation of links I’m sure you’ll find interesting:
Bankrate.com recently published a story Should you pay debt before savings? It’s a good write-up of an important question for those living Beyond Paycheck to Paycheck. Plus, I was quoted for the piece.
Social Security recently announced that there will be no increase in [...]
You: You’re watching pre-season basketball?
No. Honestly, I might even watch golf first.
You: What’s wrong with watching golf?
I find it more boring than the prospect of playing it.
You: Wow. So what’s with the “fourth quarter” reference then?
I’m talking about the fourth quarter of the year, which begins today. For better or worse, many companies – especially [...]
Choosing whether to convert an existing IRA into a Roth IRA is an important decision. Currently, such conversions are limited to people with MAGI’s (that’s modified adjusted gross income in IRS-speak) of less than $100,000. But in 2010, that income restriction goes away. Therefore, virtually everyone will have the opportunity to convert their IRA into [...]
You: Cheesy title.
You: You too?
Yup. Anyway, I thought I’d take this fine Monday morning to highlight some of my best recent articles from around the web:
Twelve Crazy Myths of Personal Finance was a ton of fun to write. Pretty sure you’ll enjoy it too, evidenced by its selection as an editor’s pick at [...]
One of the most common myths of retirement is “Plus, I’m going to get an inheritance.”
You: For you, maybe. My parents still love me.
It has nothing to do with love.
You: Sure it does. If it didn’t, I wouldn’t let half my relatives in my house.
That’s not a good ratio.
You: Tell me about it; I was [...]