In the United States, an IRA is an Individual Retirement Arrangement, a tax-deferred retirement account.

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Why invest in IRA while a low-cost index fund is much simpler?

I'm currently investing in a low-cost index fund and wonder what's the point of opening an IRA (either Roth or traditional). The big con of IRA is that you can't withdraw before retirement age ...
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30 views

Which online brokers offer free or cheap IRA conversions and transfers?

I am considering to a backdoor conversion between a traditional IRA and a Roth IRA. The problem is my current broker's FAQ states that they don't support IRA conversions at this time. Does anyone ...
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165 views

Can I pay too much into an IRA?

Is it possible to accidentally put too much into a Roth IRA? Suppose I have setup direct deposit to contribute $5500 annually to a Vanguard fund, but my math was off and I contributed $6000. What ...
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114 views

Short Term Capital Gains tax vs. IRA Withdrawal Tax w/o Quarterly Est. Taxes

So I had to pull funds from my IRA account earlier this year. I had taxes withheld and realize there is a penalty, however, my question is two part: with penalties and taxes for early withdrawal, I am ...
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80 views

What to do if I get refunded by my 401k for being considered HCE?

If my employer gives back some of the money I put away on my 401k because I am considered a HCE, can I turn around and put it back into an IRA to avoid paying taxes and penalties that year? I am over ...
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2k views

Should I use IRA money to pay down my student loans?

I have just over $140,000 in consolidated student loan debt with a fixed interest rate of 5.75% on an income-based payment plan. My current and previous employers qualify for the Loan Forgiveness ...
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2answers
60 views

What rules are there for re-characterizing IRA contributions for current tax year?

I have contributed $5,500 to a Roth IRA for tax year 2014. My income is variable due to a variety of factors throughout this year, so I do not know whether my income will be within the limits for ...
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2answers
128 views

How can I calculate my income for purposes of an IRA deduction when I have HSA/401k deductions?

This chart here has the income restrictions for IRA deduction income limits. It does not use your AGI but a modified AGI. I have been unable to find any resources detailing how this income ...
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85 views

Allocating IRA money, clarification needed

I transferred my 401k to Vanguard IRA and allocated 70% of my money across: VIG (Dividend growth) VYM (High Dividend) VXUS (International) VTI (Total stock market) With market being ...
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1answer
72 views

Add > 5,500 (excess contribution) to Roth IRA for temporary investment?

I have an standard IRA through work and an additional Roth IRA. I split my contributions between the two accounts. I understand the max contributions to the accounts combined is 5,500 per year. A ...
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79 views

Roth vs Traditional IRA Question

With a traditional IRA, you are taxed on the complete balance of your account when you cash out after retirement correct? This would mean you are taxed on contributions + interest earned. With a ...
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59 views

Is there a “Rollover as business startup” for IRA?

I had a 401(k) with my employer, who I left recently. I'm considering rolling this over into an IRA since I will avoid a small maintenance fee this way, but I'm not sure if I will lose the ability to ...
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546 views

If my 401k plan allows for pretax and Roth contributions, why would I want to open an IRA?

My company is switching to a 401k plan provider that allows for both Roth and pretax contributions. If I can make either type of contribution to this plan, why would I want an IRA? The previous 401k ...
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1answer
97 views

Married couple, high combined income: Can we contribute to IRA, on top of 401k?

My wife and I earn between $180,000 and $210,000 combined. The amount varies due to job changes and side consulting. She puts about 4% of her salary into a 401k which is fully matched. I put in 6% and ...
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2answers
227 views

Pros/cons of replicating a “fund of funds” with its component funds in my IRA?

I'm interested in investing in the Vanguard Target Retirement Income Fund in my IRA. That fund is made up of 5 funds: Total Bond Market II Index Fund Investor Shares (very similar to the Total Bond ...
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78 views

Legal and tax implications of former H1B holder trading in IRA account from India?

I am a former H1B holder. I am now in India. While on H1B in the U.S., I established an IRA account. My questions: Can I use the IRA account to trade options and stocks legally? If so, how can I ...
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213 views

After moving a 401k to a Traditional IRA, can I move it back out to another 401k?

I plan to join a new company that doesn't currently offer a 401k and I have funds in my old employer's 401k. I was thinking I would move the funds to something like Betterment who would do a 401k to ...
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2answers
77 views

Can I contribute to an IRA from investment income?

Can one contribute to IRA if the income for the year is received from stock sale only (no W2)? What I have been reading is that in order to contribute $X to IRA I need to have earned $X of income, ...
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158 views

Saving for retirement without employer sponsored plan

I'm considering moving to a new job that doesn't have any sponsored retirement plans. I'd like to continue saving on my own though, but it seems that IRAs have a $5,000 contribution limits. What are ...
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1answer
86 views

REITs - Traditional Account or Roth

When investing in REITs there are tax advantages in putting the investment in a retirement account. Is it better to put a REITs in a Traditional IRA or a Roth IRA considering overall growth and tax ...
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1answer
204 views

Retirement saving without employer sponsered plan?

I currently have a 401k with my employer and contribute 7%. If I no longer had the 401k, what would be my options for retirement savings? Ideally keeping the tax deduction benefits I have now. I ...
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4answers
187 views

60-Day “Borrowing” From an IRA

In brief, I am projecting out a budget for a personal construction project I am having done, and the numbers are very tight. I have some buffer built in, but if I exceed the buffer amount and my cash ...
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1answer
83 views

Is contributing to traditional IRA then converting to Roth a way around MAGI limit?

We usually contribute to a Roth IRA, but our income is variable enough that sometimes our MAGI is over the limit. In this case I want to contribute the full amount (post-tax) to a traditional IRA and ...
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1answer
869 views

If Roth IRAs are not reported on income tax returns, how does the IRS police them?

Directly from the IRS: Contributions not reported. You do not report Roth IRA contributions on your return. If that's the case, then how does the IRS make sure people don't exploit the ...
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73 views

Opening and funding an IRA in three days - is this feasible?

I'm doing my taxes. (I'm doing them really late this year because I became an independent contractor and I've been paralyzed by fear - I've procrastinated quite a bit.) Turbotax is telling me that I ...
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127 views

Can I open and fund both IRA and Roth IRA for non-working spouse in same year?

Is it possible to open and fund to max amount both IRA and Roth IRA for non-working spouse in same year? I have already opened IRA and got tax benefit for it, but now I am thinking of opening Roth IRA ...
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211 views

What is a “nondeductible contributions” with respect to Form 1040, Line 32?

On the "tip" in the instructions for Line 32, it says If you made any nodeductible contributions to a traditional IRA for 2013, you must report them on Form 8606. What are nondeductible ...
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1answer
88 views

Is it possible to transfer a 401(a) from one brokerage to another?

I created a rollover IRA at Schwab, and am trying to transfer the account, but it seems a bit more difficult than I thought. When I create a rollover IRA from Schwab, and try to transfer the Fidelity ...
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2answers
102 views

How Do I Fix Excess Contribution Withdrawl

This is a kind of a straight forward situation but I made it little complex due to my limited knowledge of Traditional IRA and 401(k). In the year 2012, I was working as a contractor. I had a ...
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2answers
428 views

Why do tax-advantaged retirement accounts have contribution limits?

Why are there contribution limits for IRAs or 401k? Since I need to make this longer, I tried to look for it. This is the closest thing I've found: Why is there such disparity of max contribution ...
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1answer
104 views

What is the best way to get cash from my retirement accounts for a home down payment?

So I am not sure the best way get cash for down payment on a house. Ideally I would like to make it 20% to avoid PMI. The purchase price on the house is going to be about 250k. I have about 5k in ...
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42 views

Retirement Plan Income - Distribution Amount

Last year I didn't have 401k and IRA plan. The reason was I moved to a new company. The company's policy is not to provide any retirement benefit in the first year. I wanted to buy $4000 by myself for ...
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1answer
82 views

401K participant for part of year - Can I contribute to an IRA?

I have participated in my previous employer's 401K plan (traditional and Roth) for three months of 2014. My new employer does not allow participation in their plan until one year of service. Can I ...
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1answer
55 views

Requested to recharacterize 2013 IRA contributions. Broker insists I fill out a “Conversion” form. Is this normal?

After getting some good answers to my earlier question, and doing some of my own research, I asked my broker to help me recharacterize my 2013 Traditional IRA contributions as Roth contributions. ...
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1answer
199 views

Rollover IRA vs traditional IRA (can I make contributions to the rollover IRA?)

I am single and used to contribute to a Roth IRA (my last contribution was years ago), but now my AGI is over the limit to contribute to the Roth. I have a "rollover IRA" that I opened a few years ...
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61 views

What are the exact catch-up IRA contribution age 50 limit rules?

If a person will turn 50 in the current tax year, can they make a catch-up IRA contribution for that tax year before they turn 50? Also, one site I found said age 50 1/2, so is it 50 or 50.5 years ...
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35 views

How do I offset the income of a large Traditional IRA distribution (+59.5age) with other losses (LT or ST)?

My Wife lost job, was 64 and took a large cash distribution from her Trad IRA. We have 8K in ST Losses carryover and 41K in LT losses carryover. It appears that the IRA distribution is seen as ...
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63 views

How can a Spanish citizen withdraw an IRA/401(k) accumulated while in the U.S.?

Let's say I am Spanish citizen. I was working in the U.S.A. during two years in the nineties. I built an IRA/401(k). Now I am 60 years old and I want to get my amount in a lump sum. How is the way ...
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95 views

Do 414(h) rollovers need to be included on form 1040 Line 16?

Upon leaving a teacher position, we rolled over 414(h) contributions to an IRA. The money was sent directly to the IRA and no taxes are due. My question is does the transaction need to be reported on ...
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2answers
77 views

Already made contributions to a Rollover IRA in 2013, but exceeded the income limit to deduct. What to do?

I switched jobs in February of 2013 and rolled over my 401(k) to a Rollover IRA, which as I understand it, is equivalent to a Traditional IRA. Over 2013, I contributed $4125 to the Rollover IRA and ...
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1answer
44 views

What is the “Taxable portion of a conversion” in a roth IRA?

From here, under "Treatment of Distributions". In particular, let's assume I have some funds in Traditional and Roth 401(k) and IRAs. Now, let's take a year when I make no income and I decide to ...
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374 views

Tax implications upon withdrawal of 401(k) or IRA while residing in India

Hypothetical situation. Let's say I am an Indian citizen living in India (and have some income). And, I withdraw money from my 401(k) or IRA. If its a traditional 401(k) or IRA, I understand that ...
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1answer
190 views

How to contribute to Roth IRA when income is at the maximum limit & you have employer-sponsored 401k plans?

My wife and I have employer sponsored 401k plans. We hit the maximum permissible AGI of $188,000 and technically cannot contribute to an IRA account. I also do some investments in stocks and funds ...
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1answer
222 views

Roth IRA vs. Traditional for married couple with AGI over $120k?

My wife and I have an AGI somewhere between $120k - $140k depending on how much I make on side gigs throughout the year. We both started new full-time jobs within the last 12 months. Here is the ...
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199 views

Retirement & asset allocation of $30K for 30 year old single guy

Recently came into some money, 30K via inheritance, which I would like to invest. I Would like to put some if not all of it towards retirement, as I have no plans to touch the money for at least 10 ...
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334 views

Married Filing Jointly & one spouse has employer 401K. Would each still be able to contribute to a Traditional IRA?

The husband participates in his employer's 401K, while the wife is unemployed. Assuming this couple does not exceed the AGI or MAGI limits for a Traditional IRA, will each of them be able to ...
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1answer
176 views

Can a self-directed IRA hold non-qualified stock options (NSO) with a vesting period, without being considered self-dealing?

I work for a startup company. They are about to go through their FMV evaluation and funding round, at which point I will be granted my options. I talked to them and said I would like the ability to ...
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2answers
345 views

What happens to a 401k if you leave your job indefinitely?

I currently have a 401k through my company. I'm saving nearly the maximum $17,500. While the company matches the first %6. If I leave in a couple of years I will be %50 vested and my balance will ...
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2answers
174 views

What, if any, IRA options are permitted with my high salary?

I am single, and make more money (more than $200k) than any of the limits I've seen for contributions or deductions for either Roth or traditional IRAs. My employer has a 401k plan. I currently do ...
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434 views

18 year old making $60k a year; how should I invest? Traditional or Roth IRA?

I've had a lot of questions regarding personal finance, and I figured this would be the best place to get some good answers. To start, I made over $60,000 in 2013 and just over $44,000 in 2012. I make ...