For 2013, I owe money to the tax authorities because I rolled over my old pretax retirement account into my Roth IRA account. I made the decision to roll it over because the funds were growing, my previous employer were invested in many closed mutual funds that I did not have access to, and I did not want it to be too unwieldy for the tax purposes.
Once I learned that once invested into the closed funds, I could rollover “in kind” and continue to invest additional money. I researched a few mutual funds and invested in them with my yearly limit to the Roth.
That being said, I weighed the options of paying the taxes: check, credit, or debit. Originally, I was going to pay with a OneVanilla card, but I asked my bill pay location, about money orders. They stated it was $.99 for a money order paid with cash and a $1 fee if purchasing with a debit card. In total, $1.99 for the money order up to $1000 was my experience. A reader and I have been talking about the money order and bill pay and his experience was up to $2k. So YMMV.
What you now need to consider if the fees as a percent is worth it as paying online with a credit card and among other economic factors. I chose the money order route to test, and am definitely over paying as a fee percentage, but I wanted to report back what is available.
- OV works for MO and would likely work for the bill pay
- Anything over $500 transaction includes extra scrutiny
- MO’s cost $1.99 for debit card
- BP’s cost $3.95
If you put some creative juices into this, you can make money, make low cost points, or make free points.