Quote:
Originally Posted by mgm4444
I'm a little confused. If someone took 250K out of the market and put it into CDs, - what is constituted as "income" ... as in ...."Obama has proposed higher taxes for families earning more than $250,000 a year". Is the 250K AND interest "income", just the interest or is the entire 250K seen as "income"? -- many thanks !
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The $250,000, the principal, is not taxed. The interest generated by the principal is taxed.
401's and certain other employer retirement accounts can be rolled over into IRA CD's and remain tax-deferred. But you have to be sure that you do the rollover right so that you do not trigger tax consequences earlier than you need to. (It's not that hard to do it right though. Ask lots of questions along the way if you need to.)
There is some fairly recent news on the FDIC insurance coverage of bank deposits. The FDIC's temporary increase in coverage from $100,000 to $250,000 was set to expire at the end of 2009. But the timeline for the increased coverage has been extended through December 31, 2013. After that date IRA accounts are to remain at the $250,000 amount of FDIC coverage, as they have been for the past few years. But other accounts are slated to revert to $100,000 coverage. See
www.myfdicinsurance.gov for details.
If you go to this particular FDIC site, the opening picture is of Suze Orman. It is a .gov site, but Suze Orman must have worked with the FDIC to get things set up to be easily navigated. Orman's investment advice is really conservative, and she is committed to making financial education accessible and clear.
Yes. I know that Suze Orman can get quite dramatic on her show when she starts hollering, "YOU CANNOT AFFORD IT," at those silly people who call her up and ask about buying ridiculous things. But those people deserve to be hollered at. And so sometimes I help Suze holler.
I used to holler a lot at Alan Greenspan when he was on television giving money away. But he never listened to me. I would get so aggravated with Al.
How lowwww could heeeee go.......I know the Fed fears inflation, but..........
And, yeah, I know Alan Greenspan used to party with Ayn Rand. But maybe he should have been partying with Boomer.
Boomer
PS: Please do not forget that I have no piece of paper that says I can give financial advice. And I have no financial alphabet designations after my name. My financial musings and theories and advice are worth exactly what you pay me.