News and Notes Archive May 2010

Another reason to avoid Frequent Flier Rewards credit cards

In an earlier News and Notes article here, we discussed credit card rewards programs.  The bottom line at that time was that generally, the best deals are cash back.  Nobody has blackout dates on cash, you can use it in small increments, cash doesn't expire.  And on a dollar-for-dollar basis, some of the most generous programs were cash programs (ie. when you come up with reasonable estimates for what points of various sorts are worth were you to buy with cash whatever those points got you).

Extended deadlines for undoing certain Roth IRA transactions

This came up recently while discussing a Roth conversion.  The folks in question had done a Roth conversion in 2009 and filed their 2009 taxes in April 2010.  Now they're not sure that they meant to do that conversion in 2009 and are considering undoing it.  (There may be a variety of reasons for undoing such a conversion, mostly beyond the scope of this note).

So the question posed was - okay - can it still be undone?  How?

Normally, the deadline for an IRA re-characterization is the tax filing…

Treasury I-Series Savings Bonds

May 1, 2010 - the Treasury has announced the new interest rates for I-Bonds.  The fixed-rate attached to all newly issued I-Bonds for the next six months is 0.20%.  The semiannual inflation-rate, used in computing the interest on all outstanding I-Bonds, is 0.77%.  These two rates are combined into a composite earnings rate for newly issued I-Bonds of 1.74%.

Some background:

US Treasury Savings Bonds.  We've all heard of them, and many of us got them as gifts when we were young.  The old versions…

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