Ask Liz Weston

March 29, 2021 By Liz Weston

Q&A: Backdoor Roth Ira conversions

Dear Liz: I am 65, self-employed and have a SEP IRA as well as a Roth IRA. I’ve had a few low-income years, and I find myself in a very low tax bracket, most likely lower than when I begin to take distributions and collect Social Security in a few years. What are the steps […]

Filed Under: Q&A, Retirement Tagged With: backdoor IRA, conversions, q&a

March 25, 2021 By Liz Weston

Thursday’s need-to-know money news

Today’s top story: Will you really run out of money in retirement? Also in the news: What to do if your mortgage forbearance is ending, 5 home remodeling trends to watch for 2021, and how to pay your medical bills without crowdfunding. Will You Really Run Out of Money in Retirement? Most people adjust spending […]

Filed Under: Liz's Blog Tagged With: COVID, crowdfunding, home remodeling trends, medical bills, mortgage forbearance, Retirement, retirement savings

March 24, 2021 By Liz Weston

Wednesday’s need-to-know money news

Today’s top story: How one airline is prioritizing customer safety. Also in the news: Getting your money resolutions back on track, treating your third stimulus differently, and the IRS expands eligibility for $10,2000 unemployment tax break. Spring Travel Ahead? One Airline Is Prioritizing Customer Safety Delta is now the only major airline blocking middle seats […]

Filed Under: Liz's Blog Tagged With: money resolutions, spring travel, stimulus checks, unemployment tax break

March 23, 2021 By Liz Weston

Tuesday’s need-to-know money news

Today’s top story: IRS Free File and how to get free tax preparation or free tax help in 2021. Also in the news: How women investors can rewrite their financial futures, options for people who can’t afford their tax bills, and beware of lender’s mistakes in your credit report. IRS Free File & How to […]

Filed Under: Liz's Blog Tagged With: credit report, IRS free file, lender mistakes, tax help, tax preparation, women investors

March 23, 2021 By Liz Weston

Will you really run out of money in retirement?

Many U.S. households retire without enough money to maintain their pre-retirement standard of living. Once retired, though, people often reduce their spending enough to make their money last, according to a recent study by David Blanchett, head of retirement research at Morningstar, and Warren Cormier, executive director of the Defined Contribution Institutional Investment Association’s Retirement […]

Filed Under: Liz's Blog Tagged With: Retirement, retirement savings

March 22, 2021 By Liz Weston

Monday’s need-to-know money news

Today’s top story: Making a plan to get your money resolution back on track. Also in the news: A new episode of the Smart Money podcast on redlining and auto loans, the 6 biggest life insurance myths about COVID, and how to know if there’s too much cash in your savings account. Make a Plan […]

Filed Under: Liz's Blog Tagged With: banking, COVID, life insurance, money resolutions, redlining, savings account, Smart Money podcast

March 22, 2021 By Liz Weston

Q&A: IRAs and tax considerations

Dear Liz: I’ve been researching the backdoor Roth IRA and I am finding some conflicting information regarding taxes owed on the conversions. I have two sizable rollover IRAs and one small ($1,600) traditional IRA. Can I make an after-tax contribution to the traditional IRA and convert that to a Roth and pay tax only on […]

Filed Under: Q&A, Retirement, Taxes Tagged With: IRA, q&a, Taxes

March 22, 2021 By Liz Weston

Q&A: Seller financing and credit reporting

Dear Liz: I bought a home and the seller financed the sale. I have made all payments on time, but that’s not reflected on my reports at the three credit bureaus. What can I do to get my mortgage payments acknowledged on my credit reports? Answer: One of the advantages of seller financing — where […]

Filed Under: Credit Scoring, Q&A Tagged With: credit reporting, mortgage payments, q&a

March 22, 2021 By Liz Weston

Here’s why emergency savings funds never go out of style

Dear Liz: I was a fortunate individual and able to save enough money to cover my expenses for at least six months in case I became unemployed. Now I am retired with a fair amount of guaranteed monthly income through my Social Security and pension benefits. Any suggestion on what to do with that savings […]

Filed Under: Q&A, Saving Money Tagged With: q&a, savings emergency funds

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