whether to buy a tax time IRA

Financial Planning - Financial planning in general. (Moderated) 

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Subject Author Date whether to buy a tax time IRA psychprof32@sbcglobal.net 04-06-2007  Re: whether to buy a tax time IRA psychprof32@sbc... 04-06-2007  Re: whether to buy a tax time IRA Justin 04-06-2007  Re: whether to buy a tax time IRA rick++ 04-06-2007  Re: whether to buy a tax time IRA kastnna 04-10-2007  Re: whether to buy a tax time IRA joetaxpayer 04-10-2007  Re: whether to buy a tax time IRA kastnna 04-11-2007
Posted by psychprof32@sbcglobal.net on April 6, 2007, 5:03 am I owe more on federal (and state taxes) than I thought. I am wondering if it makes sense to purchase an IRA for the 2006 tax year? I am retired but work at the same job part time. I am over 65. However...and here is the major "concern". I would need to purchase the IRA with a home equity line of credit. If I take out a traditional IRA for about 4000 it would "save" me about 1500 in federal and state taxes Any advice? Posted by psychprof32@sbcglobal.net on April 6, 2007, 9:25 am On Apr 6, 2:03 am, "psychpro...@sbcglobal.net" > I owe more on federal (and state taxes) than I thought. I am > wondering if it makes sense to purchase an IRA for the 2006 tax > year? I am retired but work at the same job part time. I am over > 65. However...and here is the major "concern". I would need to > purchase the IRA with a home equity line of credit. If I take out a > traditional IRA for about 4000 it would "save" me about 1500 in > federal and state taxes > > Any advice? Another thought occured to me. Can I roll over money from a dormant 403b (no longer contributing as I retired from full time work) to open an IRA within the same investment firm? Posted by Justin on April 6, 2007, 10:54 am psychprof32@sbcglobal.net wrote on [Fri, 6 Apr 2007 08:25:02 -0500]: > On Apr 6, 2:03 am, "psychpro...@sbcglobal.net" >> I owe more on federal (and state taxes) than I thought. I am >> wondering if it makes sense to purchase an IRA for the 2006 tax >> year? I am retired but work at the same job part time. I am over >> 65. However...and here is the major "concern". I would need to >> purchase the IRA with a home equity line of credit. If I take out a >> traditional IRA for about 4000 it would "save" me about 1500 in >> federal and state taxes >> >> Any advice? > > Another thought occured to me. Can I roll over money from a dormant > 403b (no longer contributing as I retired from full time work) to open > an IRA within the same investment firm? You probably can, but there would be no tax benefit to this Posted by rick++ on April 6, 2007, 9:41 am Did you have investment income in 2006? You'd be replacing 15% tax with possibly higher earned income tax via IRA. The benefits of a deferred income retirement accout accrue from decades of untaxed compound interest which is no longer an option for you. Posted by kastnna on April 10, 2007, 9:37 am Anyone ever run into a situation where someone over the age of 59.5 contribs to an IRA right before tax day to lower income taxes and then withdraws the contrib right after tax day? Is it legal? Would it be tax avoidance, or just tax deferral? Similar Threads Posted one-time IRA to HSA April 28, 2007, 2:10 pm What to do with time shares? February 8, 2007, 1:01 pm One-time rollover from IRA to HSA June 3, 2008, 5:30 pm first time appt with planner April 3, 2007, 2:31 pm How to track portfolio investments over time? October 23, 2006, 4:13 pm 1st time shopping for a Home Loan: What do I look for??? June 14, 2007, 4:59 am determine assets at time of death February 27, 2008, 5:25 am good time to roll over 401Ks? June 11, 2008, 3:11 pm Is now a good time to invest in Bond Funds? July 4, 2007, 8:36 am May 2008 (EBITDA) Is that a good time TO INVEST in R.E. ? May 20, 2008, 3:08 pm