Welcome to Delta's Monthly Newsletter
March 2010
| >>>Splitting Up Your Roth IRA Conversions What may be an optimal time to convert a traditional IRA to a Roth IRA has arrived. Beginning in 2010, high-income taxpayers qualify to make the switch, and for some, the basic trade-off of a conversion—paying income tax now in return for tax-free income during retirement—could be worthwhile. As an added incentive, taxes on conversions made in 2010 can be paid during the following two years. Yet with markets unsettled, a conversion could backfire, leaving you to pay income taxes on assets that have lost value after the transfer to a Roth. Establishing multiple Roth IRAs, rather than just one, could give you the flexibility to minimize the damage. click for more. . . |
| >>>Many Leaving Their Job Also Leave 401(k) Behind If you’re leaving your company because of a downsizing or a switch in jobs, you wouldn’t think of going without cleaning out your office. But what about the assets in your 401(k) plan? All too often, departing employees leave behind their retirement plans without giving much thought to the consequences. click for more. . . |
| >>>IRS Report Pinpoints Key Tax Trends The IRS recently released its Fall 2008 Statistics of Income (SOI) Bulletin, which provides key statistics about federal income tax returns filed for the 2006 tax year. In general, the SOI Bulletin reflects increases in income and deductions over the previous year, clear signs?of an economy and investment markets that were then still thriving. The tax trends seen in 2006 have likely been reversed during the more recent tax years, when wealth-building has taken a major hit. click for more. . . |
| >>>Convert Your 401(k) To A Roth In One Step A recent pension law change simplified the rules for rolling over assets from a 401(k) plan to a Roth IRA, and another change in 2010 means almost anyone can make such a move. You can now accomplish your objective in one move, instead of the two steps previously required, and that could make this a convenient way to guarantee tax-free income during retirement. click for more. . . |
| >>>A Welcome Spike In Personal Savings Are you looking for something good that may have come out of the recession? As a result of the economic downturn, Americans have generally been spending less and saving more. The savings rate in U.S. households in 2009 reached a high point of 6.9% of after-tax personal income in May. Even though the savings rate has slipped slightly since then, the watershed mark was the highest rate since 1992, when savings peaked at 7.7%. click for more. . . |
