Getting Started With A Roth IRA

Do you plan on saving money for retirement with a Roth IRA?  Did you know that their are things you need to consider before you set this account up?  These things would include qualifications, contributions rules, and withdrawal rules, and in this article I’m going to cover all 3 of these vital pieces.

Qualifications. Before you can even set up your account you need to consider the qualifications for Roth IRA accounts.   First off, you need to have a job to qualify, if your out of work you can’t get one.  On top of that you cannot earn more that $167,000 as your adjusted gross income on your tax returns.  If you earn more than this you won’t be able to qualify for the tax advantage benefits.

Contributions. Once you’ve qualified for an account their are some contribution rules you have to follow.  First off, you cannot contribute more than $5,000 in a given year unless you’re over the age of 50 at which point you will be able to contribute an extra $1000.  On top of that their are only several different types of good financial  investments you’re able to invest your money in with a Roth IRA.  Some of these include mutual funds, stocks, bonds, money market accounts, exchange traded funds, and certificate of deposits just to name a few.

Withdrawals.  The last thing you should know is that their are some specific withdrawal rules you must follow.  First, if you take a withdrawal before age 59 and a half you will pay an added 10% tax penalty.  This doesn’t mean your not allowed to take a withdrawal because their are specific things you can take a withdrawal for and not be penalized.  Some of these things would include money for buying your first house, money for your children’s college education, or even if you are facing a hardship.

In the end following these simple rules and qualifications will ensure you don’t face a penalty and that you have a successful retirement.

Handy Tips to Using an Online Calculator

The introduction of the internet has ushered in a multitude of online calculators freely available for anyone who needs them. From basic calculators to the most complex calculus equations, to mortgage and auto loan calculators, name it and you will find it online. With just a few clicks here and there, you can easily arrive at the number you are looking for.

Calculators have become an important tool evidenced by the fact that most of our households and offices today are filled with them, we have them on our mobile phones. PDA’s and watches. With the wide array of calculators to choose from, one is fast gaining popularity as an important tool for future homeowners, that of the mortgage calculator with taxes. This simple online tool can help you deduce your mortgage payments based upon your total loanable amount compounded with interest rates and loan terms while factoring in the taxes involved.

Another variety of mortgage calculator does its work based on your total mortgage amount per thousand, which can easily be summed up through a payment per thousand calculator. This calculator quantifies your mortgage payments and allows you to see what it will cost you to buy a larger or smaller home.

To make your online mortgage computation much easier, we are putting together a step by step guide that can make every newbie a calculator expert in no time.

Step 1

Input the total amount of loan you wish to apply for. If you are looking towards making a down payment, then you will also add that in on the specified area. The online calculator will automatically reduce your total loan amount based on your down payment.

Step 2

Input your expected interest rate. You can search online to look for the average interest rates available in the market or inquire from your local bank to come up with a realistic number.

Step 3

Factor in your desired loan term, you can choose from the available options though most borrowers opt for a 30 year fixed term.

Step 4

Include your local cost of taxes and insurance needed for your mortgage loan.

Step 5

Press enter and let your online calculator handle the rest.

Through these simple steps, you will be able to get an accurate estimate of how much your mortgage payments will amount to and will help you assess whether your are financially prepared to take on this huge investment.

IRS Becomes More Lenient in Light of Recession

The IRS typically resorts to a lien system when it has difficulty collecting taxes from individuals for a long period of time. These liens can make it hard for a person to qualify for insurance, housing, or even find a job. In effect, a lien gives the IRS access to a person’s property if the person owes enough in back taxes. This process can destroy a person’s credit rating. Since the country is working to recover from a recession, it is important that individuals have access to these opportunities to create more income. The IRS has agreed to change its lien methods so that there will be less pressure on the already strained economy.

Reducing Number of Liens

The first step in reducing the number of liens that the IRS is using is to change the amount of taxes owed that causes a lien to be placed. Until this year, a lien was put in place if an individual owed $5,000 or more in back taxes. This year, a person must owe at least $10,000 before the IRS will put a lien in place. That change alone will allow thousands of individuals to continue to make payments on their taxes without the additional pressure that a lien can cause. It will also help keep the economy moving forward because more people will be able to find work and purchase large ticket items.

Easier Lien Withdrawal

The IRS is also willing to be more flexible with individuals who are already paying on liens that were imposed previously. It is easier for someone to establish a payment plan so that they can have their lien withdrawn by the IRS. Having a lien withdrawn will immediately begin to repair the person’s credit rating so that he or she can take the necessary steps to begin paying off the tax obligation without suffering from the severe penalties a lien creates.

Delayed Payment Options

There are some ways that individuals can avoid a lien altogether. The IRS is becoming more vocal about payment options that could keep people out of serious trouble. The first step is to file your tax return on time, even if you cannot afford to make your tax payment right away. Once your return is filed, you can begin negotiating with the IRS for different payment options. The IRS will allow most tax payers to delay their payments by 30 or even 60 days in most cases.

Installment Payments

If a short delay in payments is not enough to help you pay the amount that you owe, you can establish an installment plan with the IRS. You will need to talk with an IRS agent about your options for the plan, and you will have to pay additional fees if you must create an installment plan. Keeping an open line of communication with the IRS and cooperating as much as possible will reduce your odds of being actively pursued for the taxes that you owe. The IRS has created many ways for individuals to pay their taxes so that they do not have to resort to liens.


Jessica Bosari writes about personal finance for, a site that offers money-saving tips, advice and information. Visit Billeater for more ways to save.