We’re often asked if Roth contributions and conversions are a good idea. The answer, of course, is “it depends.” There are so many factors and unique circumstances that this can be good, great, neutral, bad or terrible! Generally speaking, and all other things being equal, believe it or not, it doesn’t make any difference – […]
Update
Required annuitization of 401(k) accounts?
Does the U. S. of A. want to take away your 401(k)? I’ve had a couple of phone conversations lately about required annuitization of 401(k) accounts. (“Annuitization” means converting a lump sum into a monthly income stream.) It’s something the Department of Labor (DOL) is looking at (wasting a lot of taxpayer money, of course). […]
December 2010 newsletter
An MRP Plans, Inc. update… 1) The key limitation numbers for 2011 (and the old 2010 numbers) are: 2010 2011 Maximum annual benefit $195,000 $195,000 Maximum annual contribution $49,000 $49,000 Maximum 401(k) deferral $16,500 $16,500 401(k) deferral catchup (over age 50) $5,500 $5,500 Maximum SIMPLE deferral $11,500 $11,500 SIMPLE catch-up (over age 50) $2,500 $2,500 […]
Roth conversions permitted in plans!
In our last newsletter, we noted that Congress was considering a law that would allow for Roth conversions inside of plans, not just from IRA to IRA. It’s becoming a reality, as the House and Senate recently passed the Small Business Jobs and Credit Act of 2010 including these provisions, and President Obama is expected […]