Happy New Year - 2010
31 December 2009
How will you be spending your last evening in 2009? (please tell us in a comment below)
Party at your place? Party at a friends? With the family at home? Out at a big celebration? Maybe even braving the cold in Times Square itself? However you decide to spend your last hours in 2009 I hope that you all have a Safe and enjoyable time.
As we say Good Bye to 2009 and begin a fresh year with anticipation, new hopes and dreams - Our New Years resolution lists may just be starting to form. I want to reminder you to not overlook the most important investment you could make in your lifetime.
Life Insurance is for the ones you love the most. Let them know you were thinking of them before they even knew it.
Bottom Line - Life Insurance Works!
Wishing you all
A Fabulous 2010
It's IRA Season! - Are you ready
23 December 2009
It's IRA Season!
Are you ready?
by Randy Thomas
With 2009 winding down and the new year starting, it is time to prepare for the IRA season. Qualifying IRA contributions for tax year 2009 can be made up to April 15th of this year.
Traditional and Roth Contribution Limits
|
Year |
Standard Contribution |
With Catch-up Contribution (age 50+) |
|
2009 |
$5,000 |
$6,000 |
|
2010 |
$5,000 |
$6,000 |
TSA (403(b) Contribution Limits
|
Year |
Basic Limit |
With Catch-up Contribution (age 50+) |
Total |
|
2009 |
$16,500 |
$5,500 |
$22,000 |
|
2010 |
$16,500 |
$5,500 |
$22,000 |
Roth IRA Income Limits - Tax Year 2009 and 2010
Filing Status Full Contribution Contribution Phased Out No Contributions Single Filers $105,000 $105,001 - $120,000 $120,000 or more Joint Filers $166,000 $166,001 - $175,000 $175,000 or more
(source: money-zine.com)
401(k) to Roth Conversions
You can directly convert funds from a traditional 401(k) to a Roth IRA. Beginning in 2010, there are no income limitations for conversions to a Roth IRA. In addition, if you convert in 2010, you will be able to spread taxes over a two-year period, splitting the payment equally on your 2011 and 2012 income tax returns. This should make it easier to pay the taxes due on the converted funds.
If your client is leaving his employer, have them consider transferring their 401(k) assets to a Traditional IRA or a Roth IRA. Taxes will be due on the amount that is converted to a Roth IRA. However the new Roth IRA will grow tax-free thereafter. Appropriate tax and legal guidance may be needed by your client.
Seven Different Types of IRAs
Many people know about Traditional and Roth IRAs . . . but there are a number of other types of IRAs as well. Here’s a quick look at 7 of the most common.
1. Traditional IRA
2009 and 2010 contribution limit is $5,000. Over age 50 limit is $6,000
A Traditional IRA is an individual savings plan for anyone who receives taxable compensation. Contributions may be tax-deductible. Earnings in a Traditional IRA grow tax-deferred until withdrawn. They will be taxed when withdrawals begin and withdrawals must begin by the time the IRA owner reaches age 70½ . Contributions to a Traditional IRA after age 70½ are not permitted.
2. Roth IRA
2009 and 2010 contribution limit is $5,000. Over age 50 limit is $6,000
While contributions to a Roth IRA are not eligible to be tax-deductible,a Roth IRA has its advantage on the back end, with few requirements and limitations regarding withdrawals. A Roth IRA offers you: tax-free compounding; tax free withdrawals if you are older than age 59½ and have owned the account for at least five years; the potential to make contributions to your Roth IRA after age 70½ without the requirement of having to make withdrawals.
3. SEP IRA
Contributions cannot exceed $49,000 for 2009 and 2010
The maximum that can be contributed to a SEP is 25% of employee compensation) SEP stands for Simplified Employee Pension. This type of IRA is set up by an employer for the employees and like a pension plan, it is funded by employer contributions only. Contributions are tax-deductible.
4. Spousal IRA
2009/2010 contribution limit of $5,000. Age 50 and over limit is $6,000.
This is actually a type of IRA that lets a working spouse make a Traditional or Roth IRA contribution on behalf of a non-working or retired spouse. The working spouse’s income is the determining factor as to whether or not a “Spousal IRA” contribution can be made. Contribution limits and eligibility requirements are the same as those for a regular IRA.
5. Inherited IRA
(No contributions allowed in some cases)
A Roth or Traditional IRA inherited by a non-spousal IRA inherited by a non-spousal beneficiary. You cannot treat this type of IRA as your own. (If you inherit your spouse's IRA, you can name yourself as the new owner and make contributions and withdrawals from it.) Distributions from inherited IRAs are subject to required minimum distribution rules; they must be taken over the owner's lifetime and the inherited assets cannot be rolled over into a Traditional or Roth IRA that you own. Inherited IRAs may not be converted into Roth IRAs.
Rollover IRA
2009/2010 contribution limit of $5,000. Age 50 or older $6,000.
Assets distributed from a qualified retirement plan may be rolled over to a Traditional IRA, which may be later converted to a Roth IRA, if desired. Assets can be commingled within the IRA and rolled into another employer plan in the future.
Education IRA (Coverdell ESA)
2009/2010 contribution limit of $2,000
This type of an IRA provides a way for the middle-class investor to save for a child's education. Parents and/or guardians can make nondeductible contributions totaling up to $2,000 annually on behalf of a minor child. The growth is tax-free. Withdrawals are tax free provided that the money is documented as having been used for education expenses. The Coverdell ESA must be distributed to the “child” before age 30 (unless the “child” has special needs). Single filers must have a modified adjusted gross income (MAGI) of $95,000 or less and joint files must have a MAGI of $190,000 or less.
Annuities are nothing new
22 December 2009
Did you know that Annuities contracts can be traced all the way back to Roman times? It's true! Even though Annuities are popular now and President Obama is supporting them. Annuities are nothing new. Apparently during the Roman times they were know as annua, or “annual stipends” in Latin. Roman citizens could enter into this contract known as an annua, which would promise the individual a stream of payments for a fixed amount of time or possibly for life.
Annuities can provide assurance of a steady stream of income for life. Now tell me who wouldn't want that?
If you have a 401k, IRA, CD or Savings Account in which you pay taxes on the interest you gain? Then I would suggest rolling that investment into an annuity. -OR- If you have Stocks that are currently decreasing/shrinking your nest egg away, then you may want to roll it into an annuity.
Visit the Annuity Basics page to learn more.
What Term Life Insurance gives you.
18 December 2009
Nobody likes to think about their death, let alone plan for it. But when you think of it as caring for your family at an extremely difficult time. What is the best thing you can do when you are not there? ...Well have the immediate expenses (and possibly more) covered for them with Life Insurance.
What do you get when you buy a term insurance policy?
-
Term Life Insurance gives you...Life Insurance protection for a specific number of years.
-
Term Life Insurance is...Temporary Life Insurance Plan.
-
If you were to have an untimely death during your coverage period, your beneficiary receives the proceeds... Usually free from federal income tax.
-
Term Life Insurance Policies... can be obtained for protection coverage periods as 5, 10, 15, 20 or 30 years.
-
Term Life Insurance premiums are usually 2-3 times less than the permanent “Whole Life” Insurance, because it is temporary and does not build cash value in the policy as whole life policies do.
-
Term Life Insurance covers you for the specified amount of years that you choose – If you outlive the Term Insurance coverage time, the Term Insurance ends. One advantage to having term insurance and not letting it lapse is you are usually able to get a new policy easily. Be sure to get the new policy ready to be placed before the old policy ends.
Life Insurance is an important asset in todays life.
See related articles below: