Roth IRA

by diannejacob on September 13, 2014

A Roth IRA is an individual retirement account that allows you to invest in an investment portfolio that grows tax-deferred and contributes tax-free income. It provides you with the flexibility to pay taxes on your earnings in any tax bracket from zero percent to 39.6 percent.

How much can I contribute to a Roth IRA?

The annual contribution limit for 2013 for a Roth IRA is $5,500, which will be phased out in 2014 and 2015.

If you meet the following guidelines, you can contribute $5,500:

You’re age 50 or older when you begin contributing

You’re unmarried (single and never married) and you file as married filing separately

You’ve lived in the U.S. for at least five of the past seven tax years

You file your tax return with Schedule A. The Roth contribution is treated as a “pre-tax” contribution and is not eligible for the 10% early-withdrawal penalty

The deduction for Roth IRA contributions is calculated as a percentage of the individual’s adjusted gross income (AGI), a lot of people use a roth ira calculator to determine this percentage. A contribution to a Roth IRA is subject to the 10% early-withdrawal penalty. A rollover from a Traditional IRA to a Roth IRA is allowed only if you use the full conversion rules You are considered to be in a “catch-up” position if you are age 50 or older, a full-time student (even if your spouse is also a student), disabled, or you’re not filing a joint tax return with anyone.

To get around this, you can use your RMD to make both your traditional IRA and Roth IRA distributions without a tax penalty. For a complete discussion of this, see the instructions for Form 5498.

If you choose to make both distributions, you’ll be able to roll both of your traditional IRA distributions from your other retirement account to a Roth IRA. You can then roll the remaining traditional IRA distribution from your other retirement account to the Roth IRA. In either case, you’ll still be required to file a distribution from each account to avoid income tax penalties.

Withdrawals from a Traditional IRA

If you withdraw your traditional IRA contribution to a Roth IRA, you’ll no longer be able to withdraw the money until you make your final distribution. If you decide to make a distribution, you may be able to use a traditional IRA to deposit a rollover distribution from your other retirement account. This means that the remaining contributions of the distribution will become part of your other IRA account.

How much is a rollover distribution?

You can make rollover distributions to your Roth IRA, or you can make them to your traditional IRA or to a money market account. You must roll over your distribution to your Roth IRA within three months of the date of the distribution or within one year from the date of the distribution, whichever is earlier. Rollovers must be made to the same IRA as your original distribution.

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Do You Make These 5 Mistakes with Salt in Recipes?

by diannejacob on September 24, 2013

Using-Salt-in-RecipesWhenever I edit recipes, I feel my blood pressure rising (and I haven’t even consumed the salt yet!) Three things about using salt set me off:

Why do so many recipes fail to specify the amount of salt? Why do recipes say to season with salt when you can’t know if you’re adding the right amount? Why do recipes say to add salt at the wrong time?

As you know, I have opinions on recipe writing, and specifying salt is no exception. Here’s my take on where many recipes go wrong, and how to fix them:

1. Adding “to taste” to salt in the ingredients list. The ingredients list comes before [click to continue…]

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Agent Couldn’t Sell Her Memoir, so Cookbook Author Publishes it Anyway

September 17, 2013

A guest post by Kitty Morse As a cookbook writer with nine books under my belt, I always harbored a desire to write a memoir centered around Dar Zitoun, the riad that my father willed my brothers and me 50 miles south of my native Casablanca. I fantasized about writing my own story, free of editorial […]

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5 New Food Magazines to Pitch

September 10, 2013

Perhaps you’re in a rut, writing for the same publication, and it’s time to branch out? Or maybe you’re comfortable blogging but you’d like to try writing for magazines? Whatever the reason, it’s always exciting to see a new crop of magazines. Here’s a short list of what emerged recently, followed by tips on how […]

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10 More Links for Food Bloggers and Writers

September 4, 2013

A while ago I decided to start sharing links from my quarterly newsletter. The post was so successful, ricocheting around Twitter and Facebook, that I’ve decided to post a list after each newsletter comes out. So, in the meantime, sign up for the Will Write for Food newsletter. You’ll get only four emails per year, with […]

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Use Active Verbs to Enliven Recipes

August 27, 2013

Last week I aroused passions about passive voice in recipes, not only here in the comments but on Facebook and Twitter. My point was that cooking is an activity, so we need direct language that shows action. Active verbs are the ticket, an effective and efficient way to show movement. In these examples below, you […]

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