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

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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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835 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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64 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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2answers
104 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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2answers
202 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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80 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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80 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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410 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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88 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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34 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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61 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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51 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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179 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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1answer
44 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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31 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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45 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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65 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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63 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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40 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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111 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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166 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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197 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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161 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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133 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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75 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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165 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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166 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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234 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 ...
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57 views

Initial investment limit for an HSA? An IRA?

A fairly simple question but I had troubles finding the answer. (Apologies if the answer is well-known.) HSAs have a yearly contribution limit, as do IRAs. However, is there a maximum limit for the ...
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178 views

Too late to max-out my 401k but need an alternative to offset taxes?

I got 'double paid' for the first 7 month's of this year as my old job paid out severance and my new job paid me. My accountant has only just told me I will probably owe $15k in Federal taxes and ...
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109 views

Should I switch/rollover my IRA to a Gold IRA at Regal Assets?

I was recommended from a friend that I should consider switching my current IRA to a Gold IRA. She sent me a link and told me to consider switching over to Regal Assets. I haven't searched around a ...
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119 views

Changed from job that had a 401K, and the new one doesn't. How do I answer when filing?

There is a question on the tax form when filing that asks "eligible to participate in a 401K plan at work?" [Yes/No]. I contributed to my 401k up until March. I then took a new job that does not ...
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56 views

Can I contribute my existing Treasury Bills into a Roth IRA?

Let's say I have paper 30yr treasury bills sitting in a safe that don't mature for 9 years. Can I place those bills into a Roth IRA? If so, are they valued against my contribution limit at face ...
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39 views

How do I determine the IRA contribution limits for my non-working spouse who is over 50?

I am working and my spouse is not. I am under 50 and not eligible for the additional "catch-up" contribution, but she is. Am I allowed to make a spousal contribution at the catch-up rate in her ...
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504 views

The five-year rule and backdoor Roth IRA conversions with non-deductible contributions

I have a Roth IRA that was opened and initially funded more than five years ago. Now that I'm earning too much money to make regular contributions, I'd like to further fund this account through a ...
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260 views

Does converting IRA to Roth count toward contribution limit?

I have a small balance in a traditional IRA (as a result of company-match to Roth 401K contribution) and also a Roth IRA which is fully funded for the year. Can I pay the tax and convert my ...
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64 views

First time home buyer using IRA

I've been planning to save some money to buy a house in the next few years. I am 21 and working on building a solid credit score. Additionally, I've been investing some money with Lending Club (peer ...
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1answer
309 views

Why would I not rollover my 401k into an IRA when permitted?

Currently in the US there are circumstances which allow you to rollover your existing 401K into an IRA, such as when you change employers. You may also keep it in the existing employer's plan or roll ...
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130 views

Can you use external money to pay trading commissions in tax-free and tax-deferred accounts?

I contribute the max to my Roth IRA every year ($5500 in 2013, for example). However, let's say I use that money to buy two stocks, with a commission $10 each, so I am effectively only contributing ...
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1answer
591 views

Tax consequences for commingled money rolled over from 401k to Traditional IRA to Roth IRA

A 401k account with pre-tax and post-tax funds at Institution A is rolled over as one lump sum into a new Traditional IRA at Institution B. The funds are commingled at this point. The funds will ...
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1answer
357 views

Rolling over a mixed 401k (Traditional and Roth) to a Roth IRA

I am rolling over my old 401k to a new Roth IRA. My 401k contained my pre-tax contributions, post-tax contributions, employer match, and employer profit sharing. I am guessing my employer match and ...
7
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1answer
210 views

Tax-advantaged retirement savings options for someone with no 401(k) and high income

I have read that Traditional IRA and Roth IRA benefits appear to phase out beyond certain income limits. Assuming the following: I don't have access to any 401k plans through my employer My income ...
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147 views

Retirement accounts for non-working spouse

What options are available for a non-working spouse as far as retirement accounts/contributions go? I'd imagine that there are no pre-tax options, since the non-working spouse has no direct income. ...
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114 views

With max contributions possible, what are the advantages of an IRA over a solo 401k?

The only cited disadvantage I have seen for solo 401k's are fees to administer them. My broker has no fees, so we can cross that off the list. Given my position to max out a solo 401k and contribute ...
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177 views

If I expect to have little earned income in a few years, should I prefer a traditional IRA to a Roth IRA now?

I'm currently in the 25% tax bracket, with a salary of $71K; I max out my contributions to a Roth IRA and contribute to a Roth 401(k) past my employer's match. I'm also planning to attend grad school ...
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2answers
164 views

Is there a tax burden by selling IRA then paying back within 60 days?

I'm in a situation where I may need to sell a small portion of my IRA to help pay for a new home construction. The timing of this need is a bit precarious because my company is paying a bonus that ...
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208 views

When purchasing an IRA, should I contribute to a previously-opened one, or open a new one?

In general - all things being equal with regards to fund availabilities, fees, etc - is it better to add funds to an existing IRA each year, or open new ones? Are there different tax benefits to ...
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118 views

How many IRAs can I open/add-to/purchase in a given year for my family?

I want to plan for my children's futures - and while I believe I understand from articles at Fool.com, Smartmoney, and Forbes, is that I cannot purchase an IRA, as such, for them: it needs to be done ...
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93 views

Conflicting information about late recharacterizing of excess contributions

Say someone contributed more than they were allowed to for a Roth IRA in Year 1 (therefore, there was an excess contribution). Can they still re-characterize that contribution to a Traditional IRA ...
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326 views

Filing form 8606 for non deductible IRA contributions

Background: I recently realized that I need to file IRS form 8606 for a previous tax year(2011), to track my basis for non-deductible contributions to a traditional IRA. I hold a bond fund in the ...