Wednesday, February 3, 2010

Suze Orman Advice On 401k Rollover Why Does Suze Orman Say To Put Your 401k Rollover From Previous Employer In Traditional IRA?

Why does Suze Orman say to put your 401k rollover from previous employer in traditional IRA? - suze orman advice on 401k rollover

Suze Orman advises that people of your previous 401k rollover traditional IRA to be used. He said that in 2010, to move money from traditional IRA to a Roth IRA.

Several questions:
1. What is a "traditional" IRA?
2. What is the logic and benefits of moving to a Roth IRA in 2010?
3. Will not be taxed if a Roth IRA is moving? If not, why not?


coach said...

1. A traditional IRA is a tax favored account. You can reduce an amount of up to $ 5,000 per year and its taxable income. In other words, you pay no taxes on the contribution, but it grows tax free until you withdraw (which is taxed as ordinary income)

2. Some believe that increasing our tax rates, as they are currently at historically low levels. So you pay less taxes later, sometimes there is no tax (Roth). So Bush's tax cuts expire in 2010, so that our taxes will increase in 2011, when Congress is not extended. In addition, in 2010, even people with high incomes tend to be no red in the position to convert.

3. Who will be taxed if they move. But you'll never pay taxes on the money again!

Note: You should not do this if you are near retirement and a large proportion of employers in their 401k.

digdownd... said...

because the financial future of everyone in the community do believe that everyone has to pay higher taxes if we are leaving us now. Then she said that in 2010, when they can make large sums of money into a Roth rather than limited quantities, and can in principle not bother you, all passive.

However, unless they personally guarantee their statements (which it does not) with an annual income tax the difference should be less than I actually dropped my paris and you give something before taxes, some income and certain tax-exempt municipal bonds. Diversity is not limited to where to invest, but the tax status of the fund.

And do not forget that there is a tax-free movement. If you 150k retirement in 2010, then 28% tax on that amount must or 42k. You can save money .... just because .. the sanction is a free transfer, but not a rollover.

jeff410 said...

If you prefer more than one IRA account and help you lose the opportunity employer in another 401k or other retirement plan.

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