tax fun

[asthran]

So, apparently I can recharacterize some of my IRA contributions from last year, amend my return, and get an additional $400 back from the IRS.... It would also result in an account maintainance fee of $10/year for the next few years, most like, and then I'd have to deal with having both a traditional IRA and a Roth... So, question is, do I want to go through the bother, or would I rather have all my money be tax free?

Comments

[socraticlaughtr.livejournal.com]

You'll have to explain this to me, and see if I can do it.

Hey! You'll be around next tax time, maybe I'll let you rilfe through my records...

[asthran.livejournal.com]

If you want me to, I certainly can.

Roth IRAs are the best thing ever. Especially if the IRS doesn't change their mind on them.

Right now, if I can sock 20k into my IRA, and let it sit there for 40 years or so, and it grows to 200k, then none of that money will be taxed when I take it out.

There are some pundits who expect the IRS to change the rules and make the Roth IRA earnings taxable at some point, but I'm an optimist. And it's not like Social Security will be around.