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

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2
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1answer
35 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
59 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 ...
5
votes
2answers
908 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 ...
1
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2answers
108 views

Please help me decide whether to Roth IRA or pay off my underwater mortgage?

my name is Jane and this is my first time stumbling across this site. I'd appreciate any quality answers to my question. Here's my stats: 3 jobs: 55k/year FT at a church 40k/year PT at a juvenile ...
0
votes
2answers
34 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The way I see it, a Roth IRA has 3 implicit buckets of money withdrawn in this order (with the big "conversions" bucket actually being a large number of smaller buckets): Contributions Conversions ...
4
votes
1answer
42 views

Designating Beneficiaries

I have several accounts 401k, Roth IRA, etc. at a variety of different financial institutions (Fidelity, Vanguard, local Credit Union, etc). I want to set up my beneficiaries like the following: I ...
6
votes
2answers
221 views

What happens if you contribute to Roth IRA but later find out that you are ineligible?

For 2016 Roth IRA the rules state that: Greater than $193,000 - Ineligible for a Roth IRA Let's say someone makes $200,000 pre-tax salary and wants to contribute $5,500 to Roth IRA in early ...
3
votes
1answer
65 views

What is a qualified IRA distribution for a first time home purchase?

My wife and I recently purchased our first home. In order to partially cover the down payment, I withdrew about $18,000 from my Roth IRA (ie its only in my name). I know the IRS lets you waive the ...
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0answers
65 views

Mega-backdoor roth tax filing

For the backdoor (IRA -> Roth IRA, generally up to $5500 per year) conversion, we need to file Form 8606. Are there any equivalent forms that must be filed for mega-backdoor (After-tax 401k -> Roth ...
5
votes
1answer
88 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 ...
1
vote
2answers
111 views

Is it possible to have multiple retirement accounts?

Can an individual have separate traditional IRA, roth IRA, 401k, roth 401k etc...? Assuming they somehow have the income to put into them, and yet are still eligible to have such accounts? If not, ...
1
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2answers
62 views

How do I actually open a Roth IRA?

I want to open a Roth IRA account. I decided to read a guide on how to do so, namely: https://www.daveramsey.com/elp/roth-ira-starter-guide?snid=tools.rothiraguide But i'm stuck on "The best way to ...
3
votes
1answer
68 views

5 year rule on Roth 401k to Roth IRA rollover containing converted amounts

Suppose In tax year t, I contribute 10000 to a Roth 401k and 10000 to an after tax 401k. By tax year t+1, both amounts have grown by 10000 to 20000. In tax year t+1, I convert the full 20000 from ...
3
votes
0answers
54 views

Using a Roth conversion ladder in a 401(k) while also retaining backdoor Roth IRA conversions

Consider the following scenario: John Q. Public has a high enough MAGI that he is not eligible to make Roth IRA contributions (and hence also cannot deduct traditional IRA contributions). John also ...
0
votes
1answer
50 views

No 401k available, max contribution for IRA and Roth

I'm a higher income w2 contractor through a no-frills agency. No 401K. What is my max contribution that I can make to my personal IRA\Roth combined, and which should account type should I prefer. For ...
0
votes
1answer
69 views

Opening a Roth IRA account, what is the fee structure for Vanguard, Scottrade and TIAA-CREF

My wife and I recently came into money (i.e. I just got a job!). We are looking to open Roth IRA accounts for the two of us. We currently have a brokerage account at Scottrade and my employer ...
3
votes
2answers
60 views

Does rental income count towards Roth IRA phase out range?

Let's assume the following scenario: Someone is single Earns a $100k yearly salary from their employer. Collects $35k a year in rental income Will this scenario qualify someone for the phase out ...
6
votes
1answer
70 views

US Taxes: How does the foreign earned income exclusion affect Roth IRA contribution limits?

We are US citizens. We live overseas and make our income from a business here. We pay taxes here on the income and thus don't pay US taxes on it. Let's say we make $50,000 and all of it is excluded on ...
2
votes
1answer
38 views

How to file tax return when doing a backdoor roth conversion?

I contributed $5,500 to my Roth IRA in this year. Later on I realized I might not be eligible for a Roth IRA contribution so I recharacterized that contribution as a traditional IRA. The market had ...
3
votes
3answers
109 views

Cons of withdrawing money from an Roth IRA account?

I would like to withdraw the money from my Roth IRA account. But I have the following concerns, before I make the decision. Will there be fee, charge, or penalty if I withdraw the money from Roth ...
2
votes
2answers
47 views

Can I file married filing separately if I already have a Roth IRA but no conributions?

I have a Roth IRA that was opened when I was single in 2014. I made contributions for the tax year 2014. Now in 2015 I still have that account however I did not make any contributions to it for the ...
6
votes
5answers
1k views

Why are there income limits for Roth IRAs?

Why does the IRS establish a Modified AGI limit for contributions to Roth IRA accounts? I can understand having a limit for Traditional IRA accounts because the government doesn't want to lose out on ...
6
votes
1answer
475 views

What's the deadline to contribute to a Roth IRA

Is the deadline for contributing to a Roth IRA? Dec. 31 or when I file my taxes?
2
votes
1answer
79 views

Should I invest my signing bonus in my old company's 401(k)?

I recently accepted a position with a new company, and negotiated a signing bonus to make up for the 401k match that I'm going to miss from my old employer (it's only paid out yearly at the end of the ...
2
votes
1answer
126 views

What's the difference between investing in Index Fund through and not through a IRA/Roth IRA?

I'm a young adult who currently invest in Vanguard index fund using money from my paycheck, which is already taxed. What is the difference of doing this compared to put the money into a Roth IRA ...
2
votes
0answers
48 views

Using Roth and Rollover IRA for home down payment

I'm not able to find anything on this. I'm planning to withdraw $5000 from my Roth IRA and $5000 from my Rollover IRA for a home down payment. That's the $10k max to avoid a 10% penalty. But does ...
2
votes
2answers
97 views

Is it possible to recharacterize an IRA twice?

I made a contribution to my Roth IRA and did not know there is an income limit that precludes one from making contributions to Roth IRA if one is over that limit. Now that I discovered this, I have ...
2
votes
4answers
108 views

Roth vs. Whole Insurance vs. Cash

Long time browser, first time poster in "the stacks." Please forgive and inform me of any mistakes I make. I recently graduated college (23 years old) in the US and have started my first salaried ...
1
vote
1answer
110 views

Using IRA to pay off federal parent plus student loans

I have $165,000 in my IRA which I'm really wanting to avoid using, but am seriously considering withdrawing or taking it all from this IRA to pay down my parent plus student loans. I am 58 yrs old I ...
10
votes
2answers
231 views

Deductions greater than Income : Traditional IRA to Roth Conversion?

Jurisdiction is US/Oregon I retired in 2014. In 2015 I am drawing on cash and investments held in a taxable account, and don't foresee needing to tap my IRAs for several years. Thus I am in the ...
4
votes
2answers
226 views

Undo 401k to IRA rollover?

After I left my employer I rolled my 401k over to a traditional and Roth IRA (Roth for after tax contributions, traditional for everything else), but am having second thoughts. Is there any way to ...
2
votes
1answer
287 views

Will a Roth 401k rolling over to a Roth IRA allow the money to become penalty-free at withdrawl?

I'm aware that a Roth 401k and a Roth IRA are funded with pre-tax amounts, and no taxes are incurred upon withdrawal. However, I have stumbled upon a few articles that state a 10% penalty early ...
2
votes
1answer
62 views

Backdoor Roth IRA Maneuver - Multiple T-IRA Accounts

The way I understand the pro-rata rule is that if you have $5K in T-IRA (deductible), open and contribute $5K to a new T-IRA (non-deductible), then decide to convert the latter $5K into Roth IRA, you ...
3
votes
0answers
49 views

How can I purchase new assets for my Roth IRA while residing in Canada?

I'm a US citizen and currently reside and study in Canada. My Roth IRA is currently at Vanguard (in the US). While I reside in Canada, they do not allow me to purchase new assets with the funds that ...
0
votes
1answer
62 views

Split Roth 401k Rollover between Traditional IRA and Roth IRA

Does the guidance in IRS Notice #2014-54 apply to Roth 401k rollovers? Specifically, is it possible to do a out-of-service rollover on a Roth 401k such that: The earnings are put in the Traditional ...
3
votes
1answer
61 views

What needs to be done to transfer IRA accounts when someone dies?

My mother has died, and she had a number of IRA accounts in her name for which I am a 50% beneficiary. One was a Roth IRA. The Financial Advisor she was using wants to charge me exorbitant fees just ...
10
votes
1answer
2k views

401(k) forfeited and check issued. What can I do to avoid penalty?

Recently, I checked the website of the last 401(k) plan that I contributed. I found that the account was "forfeited", which I assume it means that it was closed due to not being an employee of the ...
4
votes
1answer
101 views

Am I eligible to contribute to Roth IRA in 2015

I had a question with regards to the ability to contribute to Roth IRA. My current scenario is I had a 401K with my previous employer ( in 2014. no contributions made since. I have not rolled it ...
4
votes
3answers
2k views

What to do with dividends and capital gains from Roth IRA. Reinvest or Transfer to market settlement fund?

I am 22 and just opened a Roth IRA from Vanguard. I am putting 5.5K a year but I was wondering if someone can give me pros and cons for what to do with my dividends and capital gains? The two options ...
5
votes
2answers
226 views

Future viability of Roths

In the spirit of this question, now 4 years later, I'd like to know if there are any concerns with the future "security" of Roth accounts. I'm currently maxing out mine and my spouse's Roth and ...
1
vote
1answer
78 views

Pre- & post-tax calculations for comparing contribution amounts for traditional 401k vs. Roth IRA?

I currently have a rollover IRA which I no longer contribute to and a 401k which I currently contribute to. I would like a Roth account to be more diversified from a tax perspective. I currently put ...
1
vote
1answer
56 views

Under federal rules, does a non-taxable IRA Roth Conversion impact school financial aid?

If you convert a traditional IRA to a Roth IRA and all the funds were deposited into the traditional IRA as non-deductible contributions, and there is no gain, and thus there is no income by the ...
4
votes
2answers
445 views

What penalties exist when moving from a Roth IRA into 401K?

The move from investing in a Roth IRA to having an employer-provided 401K is the only move that I can find information on. For the past fifteen years or so I've managed a Roth IRA for myself (and for ...
0
votes
1answer
72 views

How to buy stuff (stocks?) in IRA account? What else?

I just opened an IRA account on TDAmeritrade.com. I only put in several thousand dollars as a starter, just for exploring the interface. I have never had an IRA account or even read much ...
5
votes
2answers
264 views

If I'm eligible to max a Roth IRA, Do I ever considering putting money in both IRA types instead?

Age 28 (Turn 29 in November) Gross Income - 110,050 Retirement (At the start of 2015) - $12,000 in Roth IRA My current contribution for the year is aimed at: 9,000 in Roth 401k 9,000 in ...
10
votes
2answers
871 views

Roth IRA: Vanguard vs Free Advisor's Mutual Fund

Background: I recently turned 25 and became applicable to invest into my employer's 401K. Due to no matching, I have 3% allocated in as a supplemental retirement fund. Currently single, rent (no ...
5
votes
1answer
189 views

Should I convert from IRA to a Roth IRA based on an online calculator?

Several online conversion calculators pretty much give me the same or similar results if before and after retirement tax brackets are the same i.e. 25%. If my tax bracket drops to 15% after retirement ...
5
votes
1answer
221 views

Is tuition reimbursement considered taxable, earned income?

I am a student paying tuition to attend a University. I worked in a lab, so I received a "reimbursement" on my tuition (that is how the University denoted the compensation). Does this "reimbursement" ...
0
votes
3answers
101 views

Does Maxing my Roth IRA Early in the Year Provide More in the Long Run?

Recently, I've been looking into investing into a Roth IRA since I'm in the lower end of my twenties. Due to no employer match and feedback from co-workers, I felt this would be a good option to ...
0
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0answers
89 views

Does saving for retirement pre-tax make sense to stay in a lower tax bracket if I'll earn more later?

Does it make sense to save in a Regular IRA vs the Roth IRA in order to keep me in the 25% tax bracket? In reality career wise I will probably cap out at 150k in today's dollars. I've been able to get ...