The Skilled Investor

Summary Table of Traditional IRA and Roth IRA Tax Rules

Mon, 23 Jul 2007 18:40:00 -0500

For your convenience, the table provided summarizes 2007 tax rules for traditional IRAs and Roth IRAs. You should consult IRS Publication 590, "Individual Retirement Arrangements (IRAs)" and/or a tax professional to confirm this information, before you make any personal financial decisions.

The table provided has a left-hand column of questions and 12 columns of information. Read the first four questions in the first four rows to determine which of the twelve columns would apply to you.

Once you have done this, you should have found one "traditional IRA" column and one "Roth IRA" column that would apply to you. Read the remaining questions further down the table to compare the various traditional IRA and Roth IRA rules that affect you. Be careful to distinguish between the rules about whether you can make a contribution and whether an allowable contribution is tax deductible.

Tax-advantaged investing is very good for most people at most times

Tue, 20 Mar 2007 23:40:00 -0500

You should invest in tax-advantaged investment vehicles, when you are more likely to gain a net long-term after-tax benefit. For majority of people, this will be most of the time. You should understand the potential and specific economic benefits of tax-advantaged investing within the context of your particular projected lifecycle financial affairs and tax situation.

Factors that tend to favor Roth tax-advantaged plan contributions (Part 2 or 2)

Tue, 06 Mar 2007 19:40:00 -0600

In a recent article, which is listed in this category and is entitled "Traditional versus Roth tax-advantaged plan contributions," The Skilled Investor discussed why the average taxpayer would tend to benefit more by contributing to traditional rather than to Roth tax-advantaged IRA and 401k retirement plans. This follow-up article, which is in two-parts, discusses eight personal financial planning factors, which could flip one's preference toward making current contributions into Roth tax-advantaged plans instead.

Factors that tend to favor Roth tax-advantaged plan contributions (Part 1 of 2)

Tue, 06 Mar 2007 19:30:00 -0600

Traditional versus Roth tax-advantaged plan contributions

Thu, 01 Mar 2007 13:20:00 -0600

Many taxpayers puzzle over whether to contribute to traditional versus Roth tax-advantaged retirement plans. For most people, contributions to traditional tax-advantaged plans will probably provide a higher net present value over their lifetimes.

U.S. state personal income tax rates

Tue, 30 Jan 2007 14:40:00 -0600

The Skilled Investor has made available for downloading a spreadsheet that contains graduated personal income tax rates and other personal income tax rate information for the 50 states and the District of Columbia.