The IRA (Individual Retirement Arrangement) is one of the more underutilized tools for retirement planning.  The primary benefit to an IRA is tax-deferred investing.  Income taxes are not paid until taxable distributions are made.  With limited exceptions, distributions made prior to age 59½ are subject to a 10% penalty in addition to income taxes. more…

You've just finished filing your 2009 income tax returns, or you were too rushed and filed for an extension.  And here I am talking about 2010 tax planning? Yes…I am. more…

The Roth 401(k) plan is becoming a more popular retirement plan option offered by employers.  This has become the foundation for many people's retirement plan.  Unlike a traditional 401(k) plan where contributions are made pre-taxed, contributions to a Roth 401(k) plan are made after tax.  more…

Many employers will offer a 401(k) to their employees.  A 401(k) plan offers many advantages to employees.  The biggest advantage is tax-deferred investing.  These accounts are not taxed until distributions are made. more…

Last week we discussed the IRA.  This week we'll talk about the Roth IRA.

Who is eligible for a Roth IRA?

• You need to have earned income at least up to the amount of the contribution.
• There is a phase out for Roth IRA's based on your Adjusted Gross Income.  In 2009, it is as follows: more…