Newman Asset Management Blog

How are lump sum withdrawals taxed by the IRS?
My sister has inherited an IRA (not ROTH IRA).
She wants to use her option of withdrawing the entire amount and paying taxes on it on her 2009 return.
How is this taxed?
Is it taxed at the regular capital gains rate?
Why is it taxed at all, if it falls under the 0,000 thresh-hold of non taxable inheritance?
on 600,000, I meant the first 600,000 of an estate is tax free to the beneficiaries.

I’m trying to start my retirement planning (roth IRA) at an early age. I’m 23, recent college grad, newly married. I have a small amount per month that I’m able to put in but not a whole lot right now. IT seems like everwhere I look they require either a high monthly deposit or 3000-4000 start up. I’m trying to start early because I know it’s smart, but everywhere I turn is turning me down! I’m getting frustrated over the idea that I have to save up to save up! Any suggestions?

I qualify for foreign earned income exclusion. This shows as a negative on income on the tax form. If I convert a traditional IRA to a Roth IRA, the IRS will withhold some taxes. Since my income is negative, can I get these taxes back at the end of the year? Alternatively, can my negative income offset capital gain taxes?
Using the Turbotax program, it takes the value from form 2555, and places it as a negative number in form 1040. Reading the instructions from form 2555, it says to place the value in parenthesis which indicates a negative, correct?

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I have both earned and unearned (dividend, investment, interest) income. My earned income is excluded from my US tax return since I’m physically outside the US. Can I still contribute to a Roth IRA?
Thanks, I thought so. I also assume I have to exclude either all or none of my foreign-earned income if it’s below the threshold.