Roth IRA Qualifications: The Rules To Qualify Plus What To If You Don’t
Posted on September 3rd, 2010
A few years back I was planning out my retirement scanning through various ways to save for my retirement and one option I came across that interested me was the Roth IRA. The reason I was so impressed with it was because it allowed me to stick after tax dollars into the account without having to pay taxes on the earning I made when I retired. This it literally the only retirement account of its kind to do this.
In this article I’m going to show you what it takes to qualify for a Roth IRA and if you don’t I will also give you some suggestions as to other places you can turn to.
Do I Qualify For A Roth IRA
First off their in no age limit to apply for this type account. You can be 16 or you can be 60 it does not matter. However in order to open the account you are required to be earning some sort of income from a job or some sort of asset such as real estate.
Second, their are contribution limits as to how much you can put into a Roth account. For anyone under the age of 50 you can only contribute up to $5000 as of 2010. However if you are over the age of 50 you will be allowed to contribute an extra $1000 on top of the already $5000 contributed.
Third, contributions can be withdrawn up to 5 years after funding an account. However any earning that you make cannot be withdrawn until the age of 59 and a half. You will also only be able to withdraw the money before retirement for a specific reason also such as facing a hardship or buying your first home.
Fourth, spouses can also contribute income as well. However in order to do this the couple has to be filing jointly on their tax returns and they must also be earning an income as well.
Fifth, contributing to other retirement plans such as your companies 401k program or 403b program will not effect the amount of money you will be able to contribute to your Roth IRA account.
The sixth and final Roth IRA qualification is that you cannot exceed certain income limits. First off if you are filing a single tax return you will be able to earn up to as much as $120,000 adjusted gross income before they will not allow to contribute anymore. If you are filing jointly you can earn as much as $177,000 adjusted gross income.
What To Do If You Don’t Qualify
So there you have it, the qualifications for Roth IRA accounts. However you might be wonder what you should do if you can’t meet those guidelines. So here are a few ideas.
- Look into work related retirement accounts. If you can’t qualify for a Roth IRA you may be able get on your companies 401k or 403b plan. However these accounts will have different tax rules. They will also allow you to contribute as much as $16,500 a year under the age of 50 and if you are over 50 you can put in as much as $22,000.
- The next option is a non qualified annuity. The benefit with this type of retirement investment is that they can still give you the tax deferred earning like your 401k plan but their no contribution limits. However one downside to annuities is that they can be very pricey and expensive when compared to similar investments.
- Solo 401k or Simple IRA Plans. Finally, if those two options don’t work the final option you may be able to consider is if you own a business. If you are a sole proprietor with no employees you may be able to consider the solo 401k which is similar to the regular 401k however it is meant for the one person business owner. Another option is the simple IRA. This is an employee based retirement plan that allows you to contribute as much as $11,500 under the age of 50 and as much as $14,000 over the age of 50.
What Works For You
Obviously, the Roth IRA qualifications have more strings attached but they also have some big benefits that I explained earlier. If you would like to learn more about how the Roth or any of the other accounts my be able to help you out saving for retirement, contact you financial professional and they should be able to help you out.
Ordering Promotional Items Online
Posted on August 30th, 2010
Shopping for Promotional items trade show can be simple through the use of the internet. Not only can the potential customer or business research the various items that are available and the customization options that are available for these items but they can also design and complete the orders through the internet.
Looking at pictures of each of the items that are available and comparing the prices for the items for various amounts has never been easier through the use of the internet as many companies have chosen to integrate an easy to use online catalog of their inventory onto their website, increasing the ease of ordering by business customers seeking items for trade show giveaways and promotional items.
Using the internet, it has never been easier to compare the prices that are available for specific trade show items. Using the catalogs that are available online it has never been easier to shop for certain items, compare the prices for certain quantities and even compare the rates for the personalization of these items with the name and the contact information of the company.
As an added bonus to using the internet while ordering these items customers can take advantage of special online discounts that are available. Many times, these online sales can save the customer up to fifteen percent or allow the customer to take advantage of free shipping or even free or discounted personalization of the items that are being used in the trade show.
As well as the discounts that are available, there are many other benefits that can be seen from ordering trade show items online. Ordering items online gives the business the most options when it comes to the items that can be ordered and can therefore help the business to find relevant items that are going to be unique to the business at the trade show.
While ordering online, it is important to ensure that the contact information or logo that is going to be displayed on the items is going to be displayed correctly. Ordering a proof of the graphic that is going to be used on the item or even making use of a sample that is going to be distributed at the trade show can be an effective way to ensure that the right impressions are going to be made and ensure that the information is easily seen through the promotional items.
Life After Bankruptcy: 3 Things That Could Change After You File
Posted on August 28th, 2010
Today their are plenty of bankruptcy attorneys posting ads all over TV looking to give you the so called easy way out of your debts but is it. Before you can consider ever reason bankruptcy will solve your problems, you also need to consider what is life after bankruptcy like?
In this article I’m going to cover three things that could change you life after filing bankruptcy and give you several question you think about before you consider the big “B.”
Loans and Credit
The first thing that will change in life after bankruptcy discharge is the availability of loans and credit. In most cases your loans will be either liquidated or put into a payment plan and paid off over time.
Your credit score will be lowered dramatically with it now bearing the scar of bankruptcy. In fact you will not be able to get any type of loan for at least a couple of years.
The average bankruptcy will last on your credit report for a minimum of 7 to 10 years. This means no more credit cards, mortgages, car loans, or any other loans for that fact. Your life will literally come to a stand still as credit and loans will dry up like a dessert.
You will have to rely on cash only to survive. No more quick and easy credit cards to pay for dinner or a night out on the town. You will have to live a slimmed down lifestyle that will require you to have a strong will and a ton of patance.
Do you have the will?
Housing
The next thing that may change for you is where you live. If you are filing a chapter 7 bankruptcy you may lose your home, however with a chapter 13 bankruptcy they may be able to impose a homestead exemption to protect your home from being lost. However if your home has a lot equity in it they may likely sell your home in order to cover a portion of your debts.
The problem is life after bankruptcy chapter 7 and life after bankruptcy chapter 13 can effect where you may end up living at. As in the last section I talked about how your credit will be ruined once you file bankruptcy and receive your discharge papers. No lender in their right mind will give you a loan then.
This may force you find an apartment to rent. However the problem here is that most apartment owners are now looking at peoples credit scores as a way to qualify renters. If they see that you have a bad credit score and that you have filed for bankruptcy they be less willing to rent the apartment to you.
To make things worse you may to down grade the type of neighborhood you will live in altogether. In fact you may have to move to a neighborhood that has more crime, violence, drugs, and accepts section 8 housing. On top of that they may not have as high of quality schools which means this could have a huge effect on your child’s education.
Is this what you want for your family?
Your Job
Third, you need to consider how this could effect your career. If you’re in between jobs right or recently laid off this could effect where you will get your next job.
Employers are increasing checking potential employees credit reports as a means of qualifying them. The reason they are doing this is because they want to know how they handle their finances, but also because a lot of companies are starting to get away from the practice of asking for references.
The reason companies are moving away from this practice is because of the legal liabilities involved. So instead they will check their credit report to see how they handle their money.
This could potentially limit you to getting that dream job you have always wanted. Instead you could end working at a dead end job that is a lot less desirable. On top of that your pay will decrease and you will make less money all as a result of filing for bankruptcy.
Is this what you want to do to your career?
In Closing…
I hope this article has brought up a lot of interesting questions for you to consider. In the end it could mean the difference between you living the life you’ve always wanted to something that is not. I hope this article on life after bankruptcy will help you see that bankruptcy is something you should not consider lightly.
How to Market your Company in a Cost Effective Manner
Posted on August 27th, 2010
Lots of people want to give their companies the best possible chance of success through plenty of self promotion, but the way that business and the economy is these days, it is difficult for people to have a suitable budget for this sort of activity. Gone are the days when companies were able to throw money into advertising before having any initial success with the company. These days, people tend to have to start from the bottom up, and it is often a case of allowing the business to have a slow burn effect.
A lot of people use social media marketing as a way to increase brand awareness. Although there are plenty of companies out there who can do this for you, it is one of the things that is relatively easy to do yourself, as long as there is a willingness to put the hours in.
Another way that companies can self promote, is through trade fares and exhibitions. Although there is sometimes a fee to pay for being involved in this sort of thing, it is often fairly affordable, and it is an opportunity for businesses to show their face, and meet the people that they hope to be able to work for. If you think that this could be something that would interest you, then you need to consider how you would promote yourself. One affordable option is to buy some pop up display stands which are quick to put up and are a very affordable option if you are looking for something that won’t break the bank. These can be used to display your logo, or the message you want to promote, and they should do wonders for your stall!
Voted One of LexisNexis’ Top Insurance Blogs for 2009
Posted on August 26th, 2010
Lexis Nexis has published its [Top 50 Insurance Blogs for 2009] and it was great to be included! I am hopeful that this year’s postings have been valuable to readers too. One thing is for sure: there are always things to talk about when it comes to the regulation of insurance!
I am currently working on presentations for 3 sessions at the AICP National Conference in Dallas from October 3-6: Advertising 101, Innovations in Life Product Development and Federal Oversight of Financial Services. There is certainly lots of information to share on these topics and I am looking forward to some great discussions at the conference as well as here in this remote forum. It is always great to get feedback on issues both at conferences and here. I have some very interesting exchanges with readers of the blog and I encourage you to let me know what you think of my posts and the general issues surrounding the regulation of insurance. If you have thoughts on my conference topics, I’d love to hear from you on those as well.
I hope to see you in Dallas and keep all the feedback and conversations coming on the blog posts.
Thank you for your ongoing support.