IRA withdrawal for 1st time home purchase
Q. I am making my first home purchase. Can I take money out of my IRA to help with the down payment? A. Generally, withdrawals from a traditional IRA before the age of 59 ½ are subject to income tax and a 10% penalty. There are several exceptions to the 10% penalty, one of which […]
Is that CD safe?
I frequently see ads for CDs in the local newspaper with higher than normal interest rates. Many of my clients ask me if these CDs are safe. You only want to invest in CDs, savings, or money market deposit accounts if they are insured by the FDIC. The FDIC – short for the Federal Deposit […]
Will I Owe Taxes on the Sale of My House?
Q: How do capital gains taxes work? I want to sell my home, but have only been there for 18 months. How much will I have to pay in capital gains tax? Is two years the shortest time I can stay in my house without having to pay capital gains tax? A: Generally, the sale […]
Stricter Rules for Gifting
If you give money or non-cash donations to charity, you’ll be interested in some of the provisions of the new Pension Protection Act. There are two changes affecting charity: the first is that you are now required to maintain written documents for any cash gifts in order to claim a deduction. Most churches will send […]
Are ETFs Right for You?
Exchange traded funds (ETFs) are gaining in popularity, but are they right for you? ETFs are similar to index funds, but they trade like a stock, meaning they can be bought and sold throughout the day instead of just once a day. Advantages: Low cost – ETFs have a lower annual expense than most mutual […]
Deducting Roth IRA Losses
Recently, someone asked me if they could deduct losses they incurred in their Roth IRA. Here’s my response… You can deduct losses in a Roth IRA, but the rules and treatment are different than you might expect. First, in order to claim a loss in any IRA investment, you must withdraw the entire balance from […]