Should I Convert My IRA to a Roth IRA In 2010?
As the end of the 2010 tax year comes to a close, an interesting question is coming up more often.
- Should I convert my IRA to a Roth in 2010?
There is a special 2010 tax trick that allows you to convert your traditional IRA to a Roth IRA and spread the taxes from the IRA conversion out over the next two tax years. That little tax secret expires at the end of 2010, which means that unless you convert your IRA to a Roth before year-end, you can’t lower your taxes with that tax loophole.
Roth IRA conversions are open to everyone regardless of income from now on. However, there are still Roth IRA income limits for contributions.
Is It A Good Idea To Convert IRAs in 2010?
Normally, making a big tax move like a Roth conversion late in the year is not a good tax strategy for most people because it doesn’t give you any time to compensate for it.
For example, if you were to convert an IRA to a Roth IRA in 2011, you will owe income taxes on the amount of money converted, minus any non-deductible IRA contributions you made to the traditional IRA or 401k you are converting to a Roth. Wit
Black Friday Scoop on Credit Karma & Housing Market News
Getting ready for a 4am wake-up call, extra-strong coffee, and the overwhelming madness that is Black Friday? Here’s the Black Friday Guide you shouldn’t miss.
TechCrunch’s The Black Friday Survival Guide is an entertaining, as well as practical read. Here’s some highlights:
The more you are prepared, the more you are likely to survive Black Friday with your doorbuster deals and 2-for-1 specials intact. Good luck to all of you heading out into the shopping storm tomorrow–good luck and be safe!
Today’s roundup has a priceless list of recommended links, including The Other Guide to Black Friday: Tips to Boost Your Finances While Holiday Shopping and Improve Your Home For the Holidays. Have a great holiday weekend everyone!
Mortgage recovery floundering
Building societies, banks and other financial institutes have reported that it is not expected to see any significant recovery in the mortgage market next year.
A new screening or vetting process may solidify the current restricted lending that is already in place, industry professionals have opined. This is somewhat corroborated by the fact that mortgage lending last month stood at £12.4 bn which is the lowest for a decade.
First time buyers are the most affected due to high purchase prices and restricted covenants on loan to value ratio. The typical deposit required stands at 24 % of the purchase price.
The Financial Services Authority (FSA) has also announced that it will need more stringent checks on mortgage applicants with regards to their income and realistic ability to meet payments. This will become even more focussed in the event of a raise in interest rates.
Dollar Matters: How-To
The nice thing about the personal finance blogosphere is that you can always find a few people who can tell you how to do something. Today, here are some great advice-laden posts that can really help you out — especially as the holiday shopping season kicks in:
Cyber Monday Shopping Safety Rules
Julia Scott, the Bargain Babe, shows you how to stay safe as you scour the web for deals this Cyber Monday, on Wallet Pop.
How to Protect Yourself from Debit Card Overdrafts
Tisha Tolar at Moolanomy offers an overview of what you can do to protect yourself when it comes to overdrafts with your debit card.
4 Tips to Protect Yourself From Identity Theft
Kevin at Financially Poor knows that identity theft can be something serious. H Read more…
Dallas Fed manufacturing survey shows activity increased in November
Texas factory activity increased in November, according to business executives responding to the Texas Manufacturing Outlook Survey. The production index, a key measure of state manufacturing conditions, was positive for the third consecutive month and came in at a reading of 13, up from 7 in October.
All other manufacturing activity indicators also rose, posting their best month since May. The new orders and shipments indexes turned positive after five months of negative readings.
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Labor market indicators picked up this month. The employment index rose from –4 to 6, reaching its highest level since May, and hours worked increased for the first time in four months.The following graph compares the regional Fed surveys through November with the ISM manufacturing index through October. T Read more…
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