Tax Increase Prevention & Reconciliation Act of 2005 and 401k Retirement Plans

The Tax Increase Prevention & Reconciliation Act (TIPRA) of 2005 was signed into law by President Bush on May 17, 2006. TIPRA includes a provision that facilitates the conversion of Traditional IRAs to Roth IRAs. If you read the article on Roth IRA Rules, you will know that if your Modified Adjusted Gross Income (MAGI) …

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Advantages of Making Salary Deferral 401k Contributions

In this article, we will look at the advantages of making salary deferral 401k contributions to employer sponsored retirement programs. 1) Reduces Your Current Taxable Income Contributions towards an employer sponsored 401k retirement plan are made in before-tax dollars. This means your current taxable income for the year is reduced by the total amount of …

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401k and IRA Rollovers – Direct IRA Rollover Rules – 20% IRA Withholding Law

What is a Direct IRA Rollover? A Direct IRA Rollover is when your 401k retirement savings (or 401k distributions) are transferred directly from your old employer’s account to your own Individual Retirement Account through a trustee-to-trustee transfer. This means the money never actually reaches your hands, it is wired from your old 401k administrator to …

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Roth IRA Contribution Limits for 2016, 2017, 2018, 2019, 2020 etc

Any IRA or Roth IRA account you choose to invest in is subject to maximum contribution limits imposed by the Federal Government. Here is a table summarizing the contribution limits imposed: Roth IRA Contribution Limits Table Year 49 Years & Less 50 Years & More 2013 $5500 $6500 2014 $5500 $6500 2015 $5500 $6500 2016 …

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