Sales trainer Tom Reilly shows you how to take the negative and make it a positive. According to the Biz-Blog post at salesvantage.com. "How to Fail Forward"

 

--Michael Jordan said this about failure: "I've missed more than 9,000 shots in my career. I've lost almost 300 games. Twenty-six times, I've been trusted to take the game-winning shot and missed. I've failed over and over again in my life and that is why I succeed."

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 Earnings in a Traditional IRA grow tax-deferred until withdrawn.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.