Retirement Saving & Investing- 401Ks, IRAs, and Beyond

Investing retirement accounts in the stock market is risky. Investors can theoretically lose 100 percent of their investment. However, trading stocks in 401(k) or IRA accounts is not the same as 401(k) accounts are not always fully vested. 401(k) accounts are helpful for DRIP investments.

UGMA accounts may be canceled under limited conditions. The death of the minor, transferring to a Roth IRA or when the minor reaches legal age of distribution are all circumstances when you can cancel UGMA accounts.

UGMA restrictions impact all financial accounts that are set up by a custodian to benefit a minor. The most serious UGMA restrictions is that the account is irrevocable and must be used only for purposes that are specific to expenses for the minor. In addition, UGMA funds cannot fund UTMA accounts.

Roth IRA owners have been searching high & low for the 2011 Roth IRA contribution limits. Actually, what’s new for Roth IRA are the modified AGIs, on which new contributions will be based.You’ll need to calculate, which tends to be confusing; hence, our explanations will walk you through the process

Residents of New York often are interested in finding out the age of trust termination of an UTMA account in NY. This is because at the time of transfer, the funds automatically fall under control of the minor. In New York, the age of UTMA termination is 21. In other states, it may be as low as 18.

For children who have begun working and have steady income, using UTMA funds for Roth IRA contribution may allow them to begin saving at a very young age for retirement. Roth IRA funds may have more flexibility than UTMA funds for college, home buying and other investments.

This article gives particular attention to the spouse as IRA beneficiary, whose financial considerations & investment options are more extensive than that of a non-spousal beneficiary. However, due to lack of familiarity & economic need, most spouses tend to forgo the benefits of their privileges.

Queries about moving IRA accounts offshore are being raised by future retirees who plan to retire overseas or by those being enticed to invest their retirement funds on offshore properties. Offshore investing is touted as a viable vehicle for tax avoidance –how true could this be? Read on.

Knowing the consequences of excess contribution to Roth IRA should stir awareness among account holders that over-contributions could be costly if left unchecked. This article goes beyond providing information about its tax implications, by furnishing pointers on how to avoid the unnecessary taxes .

Using IRAs and variable annuities are an increasingly popular way to plan for a supplement to ones retirement income. An investor should know how the differences between a traditional IRA versus variable annuity when compared.

Many people believe that an IRA contribution must be made prior to December 31 of the tax year in order to qualify for the tax deduction. However, the IRS tax filing deadline varies, depending on your individual circumstances.

Taxpayers who took distributions from their IRA during 2010 may be wondering what is the tax rate on IRA withdrawals in 2011. The rules are complicated and apply to taxpayers differently depending on the type of IRA distribution that is taken. It is important to understand how the rules work.

Mutual fund dividends can provide a useful stream of income. However, if you plan on using dividends from mutual funds for retirement, how much money do you need to invest for retirement and which mutual funds do you need to buy?

When a shareholder who has an IRA account becomes temporarily disabled they may provide a representative a power of attorney. However, IRA accounts carry certain limitations that must be exercised including limitations on who may withdraw funds from the account. Learn about POAs and IRA accounts.

How do you minimize taxes on an inherited IRA? What are the rules regarding an inherited IRA when the beneficiary is the sole surviving spouse? What are the options for non-spouse beneficiaries?

Here are some basic principles you will need to incorporate into your investment strategy when planning for retirement. These basic principles of investing for retirement help you make the proper choices when it comes to planning.