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

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Does a backdoor Roth IRA conversion make some income completely *tax-free*?

After spending some time trying to understand the whole backdooring-thing, I came up with the following plan: Let's assume there are exactly 5500 $ in my Traditional-IRA at the beginning of the year....
2
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1answer
43 views

Tax intricacies of MLP in a Roth IRA

I've avoided holding Master Limited Partnerships (MLPs) in my taxable brokerage accounts since I don't want to deal with the tax complexities. But in an IRA (in my case ROTH), my understanding is ...
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2answers
53 views

How long after the tax year can you file form 8606

During many years in the 1990s I did not show a deductible IRA contribution on my 1040, but deposited money into my IRA account without filling our form 8606.
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3answers
96 views

Is there are legal reason for restricting someone under 59-1/2 from an in-service rollover from a 401K to an IRA?

There is a lot of confusing information on the internet regarding this. Additionally, there have been changes made by the IRS later than many articles that someone may find by a web search. I have ...
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1answer
65 views

moving funds from an IRA to a 401k

I have funds in both an IRA and a company matched 401K. I am looking to consolidate the accounts. Are there any penalties to moving my funds from the IRA to the 401K? (different companies) - I am ...
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3answers
88 views

Waiting time before converting IRA after re-characterization

I re-characterized my 2015 Roth IRA contributions as traditional, non-deductible IRA contributions. I would now like to convert all my traditional contributions to Roth IRA. How long do I have to wait ...
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2answers
205 views

Is there a downside to dropping out of my 401(k)?

My employer started offering a 401(k) plan a couple years ago with no employer contribution (we are a small company). I signed up as it seemed like a good way to force myself to save for retirement. ...
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1answer
30 views

Is recharacterization of an IRA contribution potentially a taxable event?

I contributed $5500 to a new Traditional IRA earlier this year. Since I did not have a 401(k) at work, it would have been deductible. However, now I am getting a 401(k), and my income is over the ...
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1answer
38 views

Determining if an undergraduate scholarship stipend is eligible for an IRA

I'm a recipient of an undergraduate scholarship that covers full tuition and provides an additional annual stipend (paid directly to me) for general living expenses in return for employment after ...
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3answers
130 views

Do I have to pay taxes on a Roth IRA that is opened with Wedding Gifts?

I am a 29 year old teacher that will be getting married in July. I was hoping to use some of the remaining money from the wedding to open up a Roth IRA. I am not a financial professional and have ...
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9answers
5k views

Should I withdraw from my IRA to pay off my credit card debt?

Should I withdraw $45,000 from my IRA to pay off credit card debt? I am 63 years old. Because of a change in employment status for the last 4 years I went from full time to part time. In order to ...
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1answer
44 views

Taxable Amount of Non-Deducted Traditional IRA that was Converted

If I contribute $5500 to a traditional IRA, do not deduct the funds on my tax return, file form 8606, and then convert the contributions plus earnings in the IRA, say $6000 ($500 in earnings), to a ...
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3answers
136 views

Are “pre-tax” contributions to Traditional IRA a lie?

Suppose my salary for the year is $1000. My tax bracket is 10%, thus my employer has withheld $100 and I only ever get to see $900. Question #1: I would like to put everything I earned ($1000) into a ...
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2answers
119 views

Roth-IRA withdrawal penalty: 10% of what?

Early non-exempt withdrawal from a Roth-IRA results in a "10% penalty". A 10% penalty on what amount: The amount withdrawn? The remaining balance of the Roth IRA? Both? Insight appreciated
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1answer
69 views

Clarifying what a Roth IRA is and common questions

Background I have done my initial homework on Roth IRA's vs Traditional IRA's and have come up with the following understanding of Roth IRA's. I am currently a single college student. I pay tax on ...
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45 views

Personal loan from my IRA

My brother would like to borrow money from me to purchase a house. I am taking the money from my IRA. He doesn't want my name on the title. What form should I use to have a lien on the property until ...
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1answer
27 views

Is Return of Excess from an IRA Subject to Penalty?

I made a deposit into a Traditional IRA a few days ago, intending to do a Back-Door Roth. As it turns out, it wasn't a good idea (see Any Downside to Backdoor Roth?). In filling out the forms to do ...
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1answer
48 views

Moving 401k balance into self-directed IRA

This question is similar to Moving current employer 401k balance into self-directed solo 401k?, but since I am not self-employed, I'm looking to move the money into a self-directed IRA rather than a ...
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1answer
67 views

If I auto deposit every week into a Traditional IRA, can I keep doing a backdoor conversion to a Roth IRA every week?

If I auto deposit every week into a Traditional IRA, can I keep doing a backdoor conversion to a Roth IRA every week? How does that affect my taxes? Do I get taxed on the earnings each weekly deposit ...
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1answer
65 views

Allocating ETFs with different risk/return between accounts with different tax rates

Let's say, I hold three ETFs: E1, E2, E3, with E1 has the lowest risk/return and E3 has the highest risk/return. I also have three accounts: A_reg is the regular savings account, A_ira is retirement ...
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1answer
30 views

Class of shares specifically for retirement accounts with contribution limits

Regarding US retirement accounts like a 401k or IRA, can a corporation (or any entity) get around employee contribution limits by contributing a class of shares that have a certain value but get ...
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1answer
51 views

Same day Roth IRA conversion but lost some money -> How do I list that on my taxes?

I contributed in March 2016 for my 2015 Traditional IRA and then a day later I converted that 2015 IRA into a backdoor 2015 Roth IRA but lost some money in the day I waited to convert. I'm about to do ...
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1answer
25 views

SEP IRA across two tax years

I'm going to create an SEP-IRA for 2015, as I had some self employed income that contributed to a high marginal rate tax burden for that year. However, the amount I'm allowed to contribute from ...
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2answers
63 views

I just opened a non-deductible IRA, if I do a backdoor roth conversion this year, how do I contribute to the roth IRA next year?

I'm using betterment and I contributed $5500 to a 2015 Traditional IRA. This is the first time I opened an IRA. If I convert this 2015 contribution to a Roth IRA right now (because I can't contribute ...
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1answer
65 views

If I contribute to a Roth IRA and then end up exceeding the income limit, can I withdraw without extra taxes or penalties?

Let's say I contribute to a Roth IRA, and then my income ends up being higher than I expected for the year, above the IRS limits for Roth IRA contributions. I know I can recharacterize to a non-...
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3answers
59 views

Is there an advantage to a traditional but non-deductable IRA over a taxable account? [duplicate]

Let's say for whatever reason, I can not take the income deduction for traditional IRA contributions. Also, I am not eligible for a Roth IRA. Perhaps my MAGI is too high. In this case, if I ...
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2answers
132 views

Wash sale rule impact on different scenarios between different types of accounts

When wash sale rule kicks in, then the capital loss is simply postponed by increasing cost basis to the later transaction where you again purchased similar replacement stock either 30 days before ...
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4answers
1k views

Advice for college student: Should I hire a financial adviser or just invest in index funds?

I just started college and after calculating the cost for my degree I calculated that I have $50,000 that I wont need until after college. I think that the best think for me to do with that money is ...
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2answers
84 views

Withdraw IRA Early to Buy a House

I am looking at purchasing my first home, as my calculations show it would actually be cheaper to pay a mortgage (and related fees) than it would be to continue renting. I have some savings, and some ...
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1answer
38 views

IRA contribution income limits different than deduction income limit?

I never had to consider it, but am I correct in noticing that the income limits Traditional IRA contribution are different than the income limits for actually taking the tax deduction? The conundrum ...
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1answer
53 views

Can an IRA recharacterization be unrecharacterized?

Here's what happened: I made the maximum contribution to a Roth IRA this year. I thought about how my marginal tax rate now is a lot higher than I expect it to be in retirement, so I decided a ...
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1answer
39 views

I incorrectly filed Form 8606 in 2013

I filed Form 8606 in my 2013 tax return even though I didn't have a nondeductible IRA (I had a Roth IRA). How do I correct this mistake? I now have to do a conversion from a traditional IRA to a Roth ...
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209 views

2014 Traditional IRA Contribution that was not Deducted

I contributed $5,500 to a traditional IRA during tax year 2014. My accountant did not take the traditional IRA deduction, apparently I was not eligible for it. My new accountant is telling me to ...
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2answers
248 views

Rollover 401k into Roth IRA?

I'm a bit overwhelmed after looking up information regarding rollover of my 401k into a Roth IRA. If I'm to be honest with myself, I'm not knowledgeable in the personal finance subject and really just ...
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2answers
62 views

Can you recharacterize an IRA distribution?

It is possible to recharacterize an IRA contribution, for example, by moving money contributed/converted to a Roth IRA account into a Traditional IRA account. Is it possible to "recharacterize" a ...
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2answers
53 views

Managed IRA account

I have a managed IRA account in Fidelity, but the fees is too big for me. I want to cancel and put the money in another traditional IRA that I can choose my investments, but I wonder if I will be ...
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0answers
30 views

What are the disadvantages of moving a 401K to an IRA? [duplicate]

I have retained my 401-K's in my employer 401K plans even after leaving the company. Is there any reason to keep doing what I am doing or should I move them to an IRA and consolidate? I know there ...
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1answer
61 views

Do I qualify for Traditional IRA tax deduction based on Gross or taxable income?

I am married filing jointly, and we are making above $181k (above IRA tax deduction limit). However, after 401(k) contributions and charities, we are well below $181k. Do we qualify for a fully tax ...
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24 views

Automatically get pre-tax funds in a self directed Traditional IRA

A company I am employed with doesn't offer a IRA. Self directed Traditional IRA isn't a problem, but I would like the pre-tax contributions to come out of my paycheck, instead of waiting till the next ...
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106 views

Evaluatiing whether it a smart idea to convert 401K's and traditional IRA's to Roth IRA's?

Recently an investment adviser was providing free consultations at my wife's workplace. He advised us to convert some 401K's from previous employers and traditional IRA's to Roth IRA's. He did this ...
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3answers
198 views

Retirement planning 401(k), IRA, pension, student loans

Currently I am making 58k/year with a chance for a 10% bonus. (I am pretty sure I will receive this bonus). I'm trying to decide how I want to set myself up for retirement. I'm 23 years old turning 24 ...
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3answers
148 views

Can I temporarily borrow from my IRA accounts? [duplicate]

I have several IRA mutual fund accounts in Vanguard Funds. To pay taxes on time, I want to borrow some from the IRA's, but then pay it back within 60 days. Does the IRS allow this?
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1answer
55 views

Can we make traditional IRA deductions to reduce last year taxes if we have 401ks and I already contributed to a Roth?

I need help understanding IRA deduction rules for Tax year 2015. My wife and I both have 401K accounts from our work. Our filing status is married filing jointly. Our MAGI for 2015 is about 105K. I ...
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2answers
224 views

Take Social security at 65 or spend retirement savings

What is better? To retire at 65 1/2 and spend nothing but retirement savings until reaching age 70. At 70 take social security for both me and my wife and get the maximum benefit. I would spend $...
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2answers
60 views

Roth IRA recharacterization, earnings, and conversions

The way I see it, a Roth IRA has 3 implicit buckets of money withdrawn in this order (with the big "conversions" bucket actually being a large number of smaller buckets): Contributions Conversions (...
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1answer
145 views

How to file form 8606 when doing a recharacterization followed by conversion?

I made a $5500 contribution to my Roth IRA in 2015 (T1). Later I recharacterized this contribution. The market had gone down and I only got $5090 in my TIRA when the recharacterization happened (T2)....
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2answers
245 views

Can I top off my IRA?

I opened an IRA account with vanguard on 1/02/2016 and put the max contribution and put in 5,500. Since then the value has dropped to 5,000. I haven't done my 2015 taxes yet, can I add more to the ...
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0answers
21 views

As an American living in Canada what should I consider in determining distribution between RRSP and IRA contributions?

I worked in the US for 15 years before moving to Canada which resulted in a retirement portfolio in the US that contains a traditional IRA. Now living in Canada I have opened an RRSP and have ...
5
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1answer
170 views

Should I pay off my 401k loan or reinvest the funds elsewhere?

I have a loan out on my employer 401k plan for $50k, which I took out for the purchase of a home (so there was no penalties, or taxes withheld). The interest rate is 4%, which I'm paying into the ...
5
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1answer
121 views

Roth and Traditional 401k - Is it a valid strategy to withdraw from traditional for lower brackets, and then switch?

Given I am investing heavily in Roth 401k and also some in Traditional 401k... I was wondering if it is a valid retirement strategy [after retiring] to withdraw the first couple lower tax brackets ...