To be used for questions related to Retirement Tax saving scheme Roth IRA as applicable in the United States

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0
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2answers
139 views

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

Let's assume there are exactly $5500 in my Traditional IRA at the beginning of the year. Early during the tax year, I convert these $5500 to a Roth IRA. I will now owe taxes on these $5500. Later in ...
2
votes
1answer
46 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 ...
1
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1answer
75 views

Advice For an 18 Year Old [duplicate]

I just turned 18. I have a bank checking account and I'm thinking of starting a Roth IRA with some of the money I am earning this summer. I have a credit card linked to my parents account (I use this ...
3
votes
1answer
72 views

Why would I want to hold a variable Annuity in a Roth IRA?

After college I started contributing to a Roth IRA through a financial advisor that I knew and trusted. I had it for 10 years, then in 2009 I moved and found a new advisor based on a referral from ...
4
votes
3answers
89 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 ...
0
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1answer
32 views

Can I recharacterize my Roth since my income this year is foreign?

I moved abroad a couple years ago, but 2015 is the first year that I am claiming to be a bona fide foreign resident. I have been contributing to a Roth IRA for years. Filling out my return this year, ...
5
votes
3answers
1k views

How do I handle fund minimums as a beginning investor?

I'm in my early 20s, and I'd like to get serious about how I manage the money in my Roth. It's not very much, and up until this point I've only been messing around with putting it into commission-free ...
0
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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 ...
5
votes
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 ...
6
votes
1answer
55 views

What are the rules for a Roth IRA when you become a nonresident?

What are the rules for Roth IRAs when someone leaves the USA and becomes a resident of another country before the age of 59 1/2? Does the Roth IRA account need to be closed and the funds withdrawn ...
3
votes
2answers
129 views

How are contribution limits enforced on Roth IRAs for people with high income?

Say I make over 194k and can contribute 0. https://www.irs.gov/retirement-plans/plan-participant-employee/amount-of-roth-ira-contributions-that-you-can-make-for-2016 I know my brokerage Roth IRA ...
3
votes
2answers
65 views

Ordering of backdoor Roth conversion and rolling over 401k?

I have two retirement accounts: Traditional IRA funded with non-deductible contributions 401k I left my job so I want to roll over my 401k into a Rollover IRA, but I've also heard about the ...
0
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0answers
21 views

What are the tax implications of transfer fees while rolling over Roth IRA held in CD?

I have some money in a CD that's in a Roth IRA account. I'd like to transfer it out of that account and into another one, as part of a roll over. The CD is not at maturity, so I will need to pay a ...
1
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3answers
72 views

Td Ameritrade Roth IRA question

I recently opened a Roth IRA at Td Ameritrade. I'm making regular deposits but haven't chosen a fund. I don't want to pay a fee, or cost to trade what are my options? It's overwhelming looking at ...
2
votes
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 ...
0
votes
1answer
51 views

Roth-IRA penalty = effectively lowering short term capital gains rate to 10%

Although dubbed a penalty, does a Roth-IRA early withdrawal "penalty" effectively lower the short term capital gains rate to 10% instead of linked to your actual income bracket? As the early ...
4
votes
2answers
122 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
1
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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 ...
1
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1answer
54 views

What do I do now if I contributed to Roth IRA in 2012-2013 and my MAGI exceeded the limit?

In 2013 I opened a Roth IRA for year 2012, contributing $4000 for year 2012. In 2014 I contributed $5500 to that same Roth IRA for year 2013. In 2015, I realized I was not eligible to contribute to ...
4
votes
1answer
96 views

19 Year Old Investing $1000 In Roth IRA and $100 monthly

I am a 19 Year Old College Student who just opened his Roth IRA I put $1000 dollars in it and am putting $100 monthly to start out. I was wondering the best way to diversify my portfolio. Being young ...
3
votes
1answer
61 views

How do I determine the total amount and composition of a Roth IRA in-kind re-characterization?

I have to re-characterize all of my 2015 Roth IRA contributions. I made contributions throughout the year. I've used the contributions from this year and previous years to buy various stocks. I ...
4
votes
2answers
123 views

Any Downside to Backdoor Roth?

Regardless of income, is there any reason not to do a back-door Roth if you can afford it? Since you are paying tax on that income used for the contribution either way, it seems that there is only ...
1
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1answer
56 views

Contributed to a Roth IRA…But I'm Married Filing Separately

In 2015 my wife and I both contributed $5,500 (each) to a Roth IRA. We went to a bank, talked to an adviser and generally felt like we were doing the right thing. The website for managing the IRA ...
1
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2answers
64 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 ...
3
votes
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-...
1
vote
2answers
87 views

How should I deal with over-contributing to a Roth IRA?

While doing my taxes, I came to the realization that my income for 2015 is above the limit to contribute the full $5500 to my Roth IRA, but below the limit where I am unable to contribute. My ...
1
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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 ...
0
votes
1answer
66 views

What does liquidate my fidelity ROTH mean?

I am trying to rollover my fidelity ROTH to Betterment and I've authorized Betterment to initiate the rollover. The next step betterment requests is that they me to liquidate my ROTH, but I'm not sure ...
6
votes
2answers
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 ...
3
votes
3answers
66 views

Should one only pursue a growth investing approach for Roth IRAs

I just opened a Roth IRA and I have been doing some research on what to invest in. I am going to be fairly aggressive considering my age and do a 90/10 stock/bond mix, but I do have one question, ...
3
votes
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 ...
3
votes
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 ...
4
votes
1answer
118 views

How often should one's retirement portfolio be adjusted (rebalanced), and how?

I'm opening my Roth IRA Account. My question is: How often should I adjust my portfolio? I know this depends on a variety of factors: I'm 23, plan to retire when I'm in my 60s (or at least withdraw ...
2
votes
2answers
122 views

Good/Bad idea to have an ETF that encompasses another

In my free time I'm trying to decide what/how/where I'm going to diversify my Roth IRA portfolio. I'm saving right not but haven't actually opened the account. My question is, is it a bad idea to buy, ...
2
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1answer
66 views

Roth 401k withdrawal rules

If your employer matches your contribution on a roth 401k account are you typically able to withdraw the money you deposited + the employer match from your account (I know there are penalties & ...
6
votes
5answers
274 views

Earnings on Roth contributions are non-taxable. Is that as huge an advantage as I think it is?

It seems to me that Roth contributions to a 401(k) or a Roth IRA could be extremely tax-advantaged over pre-tax 401(k) or traditional IRA contributions, but at the same time, I have trouble believing ...
-1
votes
2answers
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 ...
1
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0answers
67 views

Excess Roth IRA contributions and taxes

My wife and I contributed the maximum for our age ($11,000 combined) to a Roth IRA for the 2015 tax year. It turns out we unexpectedly made too much money to be eligible at all. I shouldn't have ...
0
votes
1answer
32 views

Is there any reason not to combine my Roth conversion IRA with a Roth “non-conversion” IRA?

I have two smallish Roth IRA accounts that were established when I was much younger based on some summer jobs. One was initiated as a Roth from the start. The other was a traditional, which was ...
0
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0answers
10 views

Opening a Roth IRA with TN Visa Status [duplicate]

I am a Canadian citizen and recently became a U.S. resident for tax purposes as of last year. My TN status expires September 2017. I will be moving back to Canada for a while and most likely come back ...
3
votes
1answer
143 views

At Vanguard, can I transfer shares from regular investment account to a Roth IRA?

Due to a misunderstanding of Roth IRA's benefits, several years back I opened a regular investment account at Vanguard (i.e. non-tax-advantaged). Now that I understand Roth IRA, I want to open one. ...
7
votes
1answer
361 views

Can I contribute to a 401k, Roth 401k and Roth IRA at the same time?

My company provides me access to 401k, and I am contributing the maximum allowed in that 401k. In addition I also have Roth IRA (I qualify for it because of income less than $193000). Recently, my ...
0
votes
1answer
35 views

Will there be any complication at the time of withdrawal by opening Roth IRA as a non US citizen?

I am currently on a H1B visa. A senior colleague at my work recommended that I open a Roth IRA. I did some research and I like the idea of it, but I was unable to find answers to all of my questions. ...
2
votes
1answer
58 views

Does a Roth 401(k) rolled into a Roth IRA count toward the annual contribution limit?

I am trying to max out my Roth IRA for the 2015 tax year, and am wondering if Roth 401(k) rollovers count as a contribution. Roth 401(k)'s are not offered by many employers, so I couldn't find much ...
1
vote
1answer
75 views

Can you transfer a Roth IRA to someone else?

My friend's uncle manages a Roth IRA for him that is in my friend's name. He has had this account open since my friend was little (obviously before he was earning any income of his own). I don't know ...
0
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0answers
67 views

After-tax 401(k) conversion

I have some questions regarding converting my after-tax 401(k) to either my in-plan Roth 401(k) or an external Roth IRA: When I convert, can I transfer stocks/funds I own in my after-tax 401(k) ...
8
votes
2answers
1k views

Using a Roth IRA instead of a college savings account

This might be a foolish idea, and if it is please tell me why. Last night I got the idea that it might be a good idea to invest the money that I'm saving for my children in a Roth IRA in their name. ...
4
votes
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 ...
1
vote
1answer
71 views

Stocks and Bonds in Roth IRA vs non-tax-advantaged

I have an account with Vanguard. I have a Roth IRA, Rollover IRA (from my 401k from a previous job), and I have a standard non-tax-advantaged account. Currently, all 3 accounts are fully Vanguard ...
6
votes
2answers
955 views

Father retired a little early doesn't need 401k but should he move it to Roth IRA?

My father recently retired at 63. He has some money in his 401k (the provider is ADP) and they keep emailing him with an advertisement telling him the ramifications of withdrawing any money out early ...