The coming financial crisis

[PoopyfaceMcGee]

Any of you accountant / finance types out there know about the one-year Roth exemption in 2010?

Would I have to put money into a traditional IRA in 2008 and 2009 to do this?  Is there a maximum amount that can be put into a Roth in 2010?

[Philly Crew]

Instead of a tax rebate, they should have used the money to help our crumbling infrastructure.  It would have guaranteed a stimulus but isn't nearly as popular as these checks.

[PoopyfaceMcGee]

Instead of a tax rebate, they should have used the money to help our crumbling infrastructure.  It would have guaranteed a stimulus but isn't nearly as popular as these checks.

How many lanes would you add to I-95?  I think the consensus is 17.

[rjs246]

Instead of a tax rebate, they should have used the money to help our crumbling infrastructure.  It would have guaranteed a stimulus but isn't nearly as popular as these checks.

The public is too stupid to comprehend that type of it-takes-time-but-really-will-help plan. Oh, and the government is too inept and dependent on union labor to make it happen in any sort of reasonable time-frame.

[ice grillin you]

someone correct me if im wrong but the way i read the 2010 roth rule is this...there is normally an income limit for roth iras...so you can only participate in them if you make less than $100k (i think)

however...the income limit is not going to be in place in 2010 so you can convert your traditional ira into a roth and all the converted money will grow tax free....but i think you will need to pay taxes on any of the contributions to your traditional ira since when you first made them they were tax deductible....

in other words you will pay ordinary income taxes on the amount transferred....and you will pay at the rate of your income plus the amount transferred

[PoopyfaceMcGee]

someone correct me if im wrong but the way i read the 2010 roth rule is this...there is normally an income limit for roth iras...so you can only participate in them if you make less than $100k (i think)

however...the income limit is not going to be in place in 2010 so you can convert your traditional ira into a roth and all the converted money will grow tax free....but i think you will need to pay taxes on any of the contributions to your traditional ira since when you first made them they were tax deductible....

in other words you will pay ordinary income taxes on the amount transferred....and you will pay at the rate of your income plus the amount transferred

That's pretty much what I heard.  The other part I heard is that you can claim the extra "income" split up over 2011 and 2012.  The part I don't know is if there is any maximum to the amount you can convert and if it has to be sitting in a traditional IRA prior to 2010.

[Seabiscuit36]

Instead of a tax rebate, they should have used the money to help our crumbling infrastructure.  It would have guaranteed a stimulus but isn't nearly as popular as these checks.

How many lanes would you add to I-95?  I think the consensus is 17.

in delaware, they need to add 20.  There is a 5 mile stretch from 141 to the MD line that makes you want to eat bullets

[ice grillin you]

  The part I don't know is if there is any maximum to the amount you can convert and if it has to be sitting in a traditional IRA prior to 2010.

i dont think there is any maximum....i mean ira contributions are limited to 4K/year (i think)....and it was as little as 2K not very long ago so most accounts cannot be very large


where else would the money be sitting other than a ira?

[Seabiscuit36]

to Marlo

[PoopyfaceMcGee]

where else would the money be sitting other than a ira?

I was thinking along the lines of a savings or money-market account.  Basically, instead of deferring the tax until 2010-2012, why not pay tax and invest in a non-retirement account, then just transfer without additional tax liability (except on interest, of course)?

Anyway, I'm assuming it has to be in a traditional IRA.  But still, those are further limited by income levels AND access to 401k plans, so a surprisingly small number of full-time workers are eligible for a traditional IRA, or at least one that provides the income tax shelter for the amount deposited.


It's things like this that infuriate me, though.  It's really not as much about the tax rate as the confusing tax code.  It inherently is beneficial to people with the means to circumvent it.

[Seabiscuit36]

ING Direct has great rates

[ice grillin you]

im pretty sure the waiver only applies to ira ----> roth transfers

[PoopyfaceMcGee]

im pretty sure the waiver only applies to ira ----> roth transfers

Good to know.  I'll be delighted to continue paying a small fraction of your salary.

[rjs246]

WalMart trying to outdo Bush in its plans to stimulate the economy. Couldn't hurt.

Also, WalMart is satan. Or Hitler, if you prefer.

[PoopyfaceMcGee]

I thought their prices were always "falling" regardless.  Haven't you seen the commercial with the smiley face axing down prices throughout the store?

I'm confused.  Please advise.