Congress Enacts New Laws Making Iras Better Than Ever!

Have you heard of the "non-deductible" IRA? I'm not referring to the ROTH IRA, but a traditional IRA that many people are stuck with as their only option (for various reasons that make investing in other types of IRAs unavailable).

In those cases, the IRS allows you to contribute to a traditional IRA, but NOT take a tax deduction for it.

You still get tax-deferred growth, but during retirement your earnings (interest and capital gains) will be taxed, but not the contribution amounts.

Did you know that Congress has enacted a new law to encourage everyone to convert their traditional IRAs (whether deducted or not) into ROTH IRAs during the year 2010.

High income earners ($99,000-$114,000) filing as a single in 2007 and ($156,000-$166,000) for joint tax returns cannot fully fund a ROTH IRA. Those with Modified Adjusted Incomes of more cannot fund a ROTH at all!

You may remember that with ROTH IRAs, there is no tax deduction --- but the flip side is that when you take out the money properly... you don't pay income taxes! But I encourage everyone that qualifies for a ROTH IRA to contribute to one -- especially the younger folks!

Also, workers who have a retirement plan available at work such as a 401(K), may be excluded from investing in a deductible IRA as well depending upon their income. For singles with income of Modified Adjusted Income of $52,000-$62,000 and joint filers with $83,000-$93,000 who have access to retirement plans at work face restrictions on the deductiblity of IRA contributions.

So what are these people supposed to do to better prepare for retirement?

They can (under most circumstances) invest in a non-deductible IRA. Congress recently made this planning option more attractive than ever due to new laws allowing you to convert these NON-DEDUCTIBLE IRAs into ROTH IRAs in 2010 - and do so regardless of your income.

Plus, Congress made the deal even sweeter for you. You don't even have to pay any income tax due on converting to a ROTH that year. In fact, the IRS will allow you to pay the income tax over two years (2011 and 2012). So you get a tax-free "loan" in 2010 (no extra tax due that year) and then have two years to pay the tax due for converting to a ROTH. Nice!

Then you have a ROTH IRA for which taxes will NOT be due when taking distributions during retirement. That is a very good thing!

So if your income disqualifies you from funding ROTH IRAs now, simply fund a traditional IRA (take the deduction now) or a fund a non-deductible one, depending upon your individual circumstances. If you are under age 50 you can contribute up to $4,000 in 2007. Those 50 or over can fund up to $5,000.

If you haven't funded a 2006 IRA yet -- even if you already filed your 2006 tax return, you can still do so. But only if it is prior to April 17 OR you have requested an extension. Simply file the IRS Form 1040X to amend your return to include the IRA deduction. (Ask you tax advisor about this).

So put as much money in these accounts as you can and then convert them into a ROTH IRA in 2010. That year will be here before you know it!

And it gets even better!

In 2010, even money in SEP IRAs and SIMPLE IRAs can be converted to ROTH IRAs. This is going to be a bonanza for the taxpayer in that they are paying taxes on IRA balances then in return for NO taxes on these funds (and their growth) during retirement.

For most people, the only money for retirement will be money that you sent ahead (and its growth). The more and earlier you send ahead (save), the better for YOU.

A List Of Great Fundraising Ideas

You may be looking for a list of fundraising ideas for your organization. Many different fundraising ideas exist and you need to think about the fundraisers carefully to find one that best suits your organization. When you see a list of fundraisers, you should also consider whether you could modify the original idea to better suit the needs of your organization and community.

The following is a list of fundraising ideas that other groups have used. You may find one that works for you.

Product Sales: many organizations sell products ranging from candles to cookie dough to candy bars. Online websites can help you see some of the different products your group could sell.

Discount Cards: this fundraiser has become increasingly popular. People love getting discounts off the businesses that they use everyday and they know that they'll soon get their money back in savings. You can either contact the businesses yourself or have the discount card company do the negotiating for you.

Themed Dinners: many groups have spaghetti dinners, soup suppers, or other special food offerings. This not only brings the community and organization together, but you can raise money as well. Some charge per person, per item, or ask for donations.

Walk-A-Thons: you can either have an entrance fee or have others sponsor a particular walker or runner. Many organizations are sponsoring 5k runs or other similar races to raise money and publicity. Ask local business to donate prizes.

Auctions: whether you want to do a silent auction or hire an auctioneer, auctions are a great way to raise money. Get local businesses and organization members to donate items and services. The up front cost on this can be very low and you can make a great deal of money depending on the items up for bid. Advertise your event and you're likely to get a wide range of community members attending as well.

Fundraising Events: events are a fun way to raise money. You might have a car wash, a rock-a-thon, or neighborhood fair. Depending on the event, you could have games for adults and kids and charge one entrance fee or a per game charge.

Many great fundraising ideas exist and with a little searching, you can find one that will raise money for your organization or product. Talk to other organization members to see which ideas they like. A list of fundraising ideas is a great place to start coming up with ideas for your group.