Bartice

I wanted to take a second to revel in all the good things going on in my life.

So many times we focus on the negative, we fall into a spiraling down tunnel of complaining and resentment that is very hard to crawl out of.

I realized that it's much healthier to tell people how you feel and suffer the repercussions now versus later.

I'm learning to pay attention to the signs people give regarding their character and that if I expect different results from them I shouldn't be surprised when I am disappointed.

I've grown enough to realize that no one is perfect and to accept that other people's actions are more a reflection of them, not me.

I have learned to love me and in doing so have been able to let others do so as well.

I have found a terrific person to share and spend time with. A person who not only accepts me as who I am but also loves me for it.

I have met new people and found that not everyone is selfish and cruel.

Instead of being resentful of the people who need so much I am appreciative that I am not in that same position.

I've learned that the less you say the better but also that silence gives away so much more. I am working on a balance.

I still want to be there for the people I can about with out sacrificing myself.

I am learning to take care of myself.

I am learning that if you place a low value on yourself people will only lower it more, so aim high.

I am focusing on bettering myself because I never want to stop learning.

I am going back to school, I am thinking about dancing lessons, brushing up on my Spanish, learning more about politics and the world in general.

I am finding me and in the process surrounding myself with people that compliment who I am, and help me to grow.

If you’ve been through the public (or even private) school system, you know well that personal finance is not taught in school, unfortunately.

If you have children and you read personal finance blogs, you also know that amongst the most valuable skills you can teach/learn in life include personal finance, delayed gratification, and the power of compound interest. Right? (that was a hypothetical)

They won’t learn the true power of compound interest by sticking their savings into a bank account these days, with interest rates being as miniscule as they are. And you can’t add their savings to your own investment accounts, without tax implications.

So where can one turn?

A custodial IRA!

Today, we’ll discuss IRA’s for minors – otherwise known as custodial IRA’s, how they work, and when they can be contributed to.

I thought it would be easiest to go through a list of questions I had about custodial IRA’s and the answers I found.

What is a Custodial IRA?

At its simplest, a custodial IRA is an IRA for a minor with earned income. The IRA is opened in the name of the minor (under their Social Security number), but is managed managed by custodian (usually a parent, grandparent, or legal guardian), generally until the minor reaches age 18 or 21 (varies by state rules). At that point, control over the custodial IRA is assumed by the minor, and the “custodial” tag is removed.

A custodian cannot withdraw or remove funds from an account they are managing, for any reason. It is owned by the minor.

How do Custodial IRA’s Differ from Regular IRA’s?

Really not at all other than the whole custodial thing. You can open either a Roth or Traditional custodial IRA.

The maximum IRA contribution is still the same ($5,000 for 2012 and $5,500 for 2013) for both a Traditional IRA or Roth IRA, up to their earned income (which we’ll get to in a bit).

And all the tax, penalty, and early withdrawal rules are the same.

The only other differences you may come across is different rules (i.e. opening account minimum) or fees from the various IRA administrators out there.

When Can a Minor Begin Contributing to an IRA?

Here’s the tricky part – contributions may not exceed the minors earned income for the year. That doesn’t mean that the contributions have to come directly from that earned income, just that the total contributed cannot exceed what they earn for that tax year.

The IRS defines “earned income” as wages, commissions, tips, salaries and self-employment income. So a minor could be a self-employed driveway shoveler at age 7, for example, and it could be considered earned income. Allowances for your household chores are generally not accepted to be earned income by the IRS.

If the child receives Forms W-2 or 1099, you automatically have records of earned income. Otherwise, keep detailed records of how much money was earned when and from whom.

Investment and inheritance income is not considered to be earned income.

Roth Vs. Traditional Custodial IRA

When determining whether or not to use a Roth or Traditional custodial IRA, consider that the main benefit of a Traditional IRA is the ability to deduct taxes on contributions on your tax return. However, most minors don’t earn enough to even require filing taxes on earned income (for 2012, if the dependent minor earns less than $5,950).

Additionally any withdrawals will be taxed, and that just seems like a mess to deal with. Roth custodial IRA’s just make more sense for their ease of use.

Can Custodial IRA’s be Used to Pay for Education without Penalty?

Yes. However, Traditional IRA withdrawals are subject to income tax. Roth IRA’s withdrawals are not.

A custodial IRA created for the purpose of paying for education expenses may not be the best idea. You should also compare with Coverdell Education Savings Accounts and 529 Plans, if your long-term goal is to help the child save for education.

Where can you Open a Custodial IRA?

Most online brokers offer custodial IRA’s. Some will have account opening minimums that are lower than a standard IRA. If you don’t see otherwise, you can probably assume the standard

Schwab, for example, has a $100 minimum to open, while their standard IRA is $1,000 to open.

Custodial IRA Discussion:

• Are you currently a custodian or did you have a custodial IRA when you were a minor? What were the benefits?
• What other points of consideration or questions do you have?

Related Posts:

• How to Roll Over a 401K Into an IRA
• Why you should Consolidate your 401K’s in a Rollover IRA

Opening a Custodial IRA for a Minor is copyrighted by 20somethingfinance.com without consent to republish.

Karma isn't real. Proof: Diddy created Danity Kane (never forget) and now he is being rewarded. He and Kate Upton have apparently been dating since late March, when the 20-year-old joined him in the VIP room of a club in Miami so they could smash their mouths together.

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In perhaps the most heartwarming story to ever involve a tiny fossilized pelvis, paleontologists have named a new species of flying dinosaur after the five-year-old cherub of a girl who discovered it. Daisy Morris, now nine, unearthed the fossil in 2008 while walking with her family on the Isle of Wight. She took the specimen to dinosaur expert Martin Simpson, who passed it onto two more dinosaur experts. The team studied the fossil for five years because, you know, it's necessary to really savor each moment of a scientific pelvis-gazing, and just announced last week that it does indeed belong to a previously unknown species of crow-sized pterosaurs. In tribute to its finder, they have dubbed it Vectidraco Daisymorrisae, or, in more common parlance, the daisymorrisaurus (ok, that's not actually how dinosaur names work, but a girl can dream!). More »

Good news for everybody out there who hates the white water: skim and low-fat milks aren't as awesome for weight-loss as we were once told, according to new research. More »

Esta entrada esta reservada para compartir con todos un video donde explico maneras básicas y practicas para liberar o limpiar tu hogar de malas energias. Las malas vibras se encuentran en todo lugar y mas aun cuando recibimos una visita que llega con mala fe o mala energia.

It was only a year ago that 227 Lenox went on auction for $400K and now the landmark townhouse building has returned on the market for $2.8 million.  This about double for what it actually sold for and apparently the 26-foot-wide building at 121st Street has been completely gutted but nothing much else has happened to the interior.  Record selling buildings closer to the $3 million mark in the historic neighborhoods have all had great locations, original details and contextual, high end finishes.  This townhouse, although rather wide, only has location going for it so it will be interesting to see if the inflated sales price will work in the current market.  More on Streeteasy: LINK

Didn't you hear? Nutso billionaire David Siegel and his wife, Jackie, the pair whose unfinished, 90,000-square-foot palace was the subject of the documentary The Queen of Versailles, are doing just fine, thank you very much. "We had the most profitable year in 33 years," Jackie said on Watch What Happens Live. "I knew secretly that we were very solid. What was shown in the movie, it didn't look that way, but we certainly were. Versailles was never in trouble." Riiiiight. [Gawker; previously]

This card speaks truth, and don't we know it. If you also are prone to getting hangry, you may want to keep a card or two around for the health of your relationships.  . 

• I'm Sorry For What I Said When I Was Hungry
  The Kitchn

Sperry Top-Sider coupon - free shipping on women's styles

Celebrate Mom in May with a new pair of shoes from Sperry Top-Sider. Maybe she already wears these super comfortable, wear anywhere shoes, or would be trying them for the first time - she's sure to love them. And you'll love that coupon code STSMOM13 will ship all women's styles free. Keep using this coupon through 05/05/2013.

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painting the tv originally appeared on My[confined]Space on April 30, 2013.

please visit MCS on facebook!

Thanks Mike (from Spain)

 

Sauce and Lady

Walk East on 109th Street, and keep going…and going a bit further –– just pass the giant brightly-lit car wash that floods the street in an eerily glow sits Piatto d’Oro. This Italian restaurant is a quirky hidden gem, decorated with lots of pinks and mint greens, plenty of those classic black and white snapshots, and pink roses on the tables. The décor, the tunes (Louis Prima, of course) and the adorable and attentive Italian staff are staples of many Italian joints, and truth be told I was having a bit of déjà vu. But, “What was it exactly that was making me feel like I’ve been here before in the best way?” I asked myself. Well, I knew instantly what Piatto d’Oro reminded me of when my meal was placed in front of me, and I suddenly wished I had ordered spaghetti and meatballs so my date and I could spaghetti kiss a la Lady and the Tramp. If the waiter came out with an accordion I would have done a few Lady-like shy blinks and kept right on eating.



As any respectable Italian joint knows, it’s all about the sauce, and Piatto d’Oro delivers on that and more. My date and I tried the fried zucchini appetizer ($5.95), penne with vodka sauce ($10.95) and the chicken Sophia Loren ($15.95) (yeah, it's a big breast of chicken (get it?!), and it's stuffed with prosciutto and mozzarella with a shiitake mushroom brown sauce). Everything was completely devoured and then the sauces were soaked up with bread. Go here with someone you're comfortable eating a lot in front of.

Piatto d'Oro
349 E 109th Street (near 1st Ave)
212-828-2929
They also do take-out and delivery.
Also see New York Magazine's review.




I apologize that these photos are a bit "Law and Order" crime scene-esque. The Hipstamatic App can be a bit addictive.



Digging into the fried zucchini.


A complimentary shot of sambuca.

via

 

Thanks Marilyn

 

via

 

1. His name was, well, Jesús

2. He was unjustly beaten up and condemned to death while the real criminal was set free

3. When his family went to visit his tomb, he was not there

4. He was surrounded by poor people [who just kept on multiplying]

5. He miraculously turned up alcohol at a party that only had water

6. At a last dinner with pals he did not pay the bill

7. He did not pay any taxes

8. He explained everything with parables

9. He was baptized by a religious relative

10. He got gifts by the Three Wise Men, not Santa Claus 

via: @hazme

 

Photo: Sergio Romero