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

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1answer
50 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 ...
2
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1answer
145 views

What's the tax rate on Roth IRA contributions for a nonresident alien?

I am considering open a Roth IRA account and I was wondering how much I'll be taxed on my deposits. I am a nonresident alien for tax purposes, and I read online that I would be subject to a 30% rate. ...
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3answers
62 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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3answers
104 views

Where do I invest my Roth IRA besides stock market and mutual funds?

I'm 25, I've invested most of my Roth IRA in the stock market, and have recently moved money to a peer to peer lending account for better compound interest returns. Where else should I consider ...
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2answers
96 views

Missed open enrollment 401k date, do not want to wait until next year

I missed the open enrollment date for this year to enroll in to 401k, I do not want to wait until next year. What are my options at this point? Should I open an IRA account? If yes, Which one ...
5
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1answer
66 views

Return a Roth IRA distribution [duplicate]

I withdrew money from my Roth IRA (let's say $5K in contributions and $6K in earnings) to buy a house, and then I didn't buy a house. Oops. How can I return or undo this withdrawal to avoid paying ...
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3answers
537 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 ...
4
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1answer
285 views

Should I be more aggressive in a Roth IRA, 401k, or taxable account?

I presently have a mix of Vanguard funds spread throughout taxable and non-taxable accounts. Some advisors claim it's better to take risk in the taxable accounts while placing bonds in the IRA. ...
2
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1answer
51 views

401k rollovers (pre & post tax contributions)

I have a 401k from a former employer. This contains both pre & post tax contributions. Do I need to open both a Traditional IRA and a Roth IRA so the distributions are rolled over correctly? It ...
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2answers
85 views

Roth IRA Limits for Dual-Income Family

My wife and I are newly married and are lucky to be making enough to have a small amount left to make in investments on a monthly basis. We're both employed full time and in our early twenties. I ...
0
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1answer
51 views

Selling within a Roth IRA and contributing the same year?

If I contribute $5500 into my Roth IRA at the beginning of 2014, but sell $5500 in July, does my contribution amount go to $0, and I can reinvest $5500 later the same year? Or does the contribution ...
4
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1answer
69 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
79 views

Can I roll my current Roth IRA in my name and my spouse's name into a Roth IRA that is only in my spouse's name?

Can I roll my current Roth IRA in my name and my spouse's name into a Roth IRA that is only in my spouse's name?
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2answers
171 views

Use Roth IRA to pay portion of federal student loans?

I'm a graduating medical student, and have ~$220,000 in student loans. The majority of this (~$180,000) is in federal student loans at 6.8%, with the rest being at a lower rate (4-5%). I also have ...
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1answer
229 views

What is an “Options Account”?

I am filling out the form to apply for a TDAmeritrade Minor Roth IRA. I understand what's going on so far, but on the actual application I see this form (I have checked off some boxes already): ...
2
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2answers
97 views

Is it inadvisable to leave a Roth IRA to charity upon death?

Short version: I have (for example) $50K of assets in pre-tax accounts, e.g. a traditional IRA, and $50K of assets in my Roth IRA. When I die, I want to leave $70K to charity and $30K to my siblings ...
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1answer
79 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
866 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 ...
2
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1answer
106 views

Are distributions from Roth 401k or Roth IRA accounts taxed in India?

I am wondering if India distinguishes between pre-tax and roth IRA/401k accounts. So, if I am contributing to a roth account (401k and/or IRA) - would I have to pay taxes in India again: On the ...
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2answers
778 views

Does it make sense to take a lower salary so I can still contribute to a Roth IRA?

Would it ever make sense to take a lower salary in order to contribute fully to a Roth IRA? This is probably very circumstantial, so let's assume: I'm not in debt and have no other obligations ...
2
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3answers
278 views

Should I contribute to current year RothIRA if I'm unsure if current year income will exceed limit?

I've always contributed to Roth IRA for the previous calendar year right before the deadline in April. The past year, I was over the limit and thus won't contribute this month. However, my income ...
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2answers
126 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
358 views

Rationale for lower deduction limits for married couples filing seperately?

I recently discovered that I can't contribute to a Roth IRA if I file taxes separately from my wife. What is the rationale for this rule? mod edit ...
3
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1answer
103 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 ...
2
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1answer
49 views

Do last minute IRA contributions reduce taxes on dividends and interest paid during that tax year?

Suppose I contribute to an IRA before the 2013 tax filing deadline in April 2014. I fund the account by moving some securities from an investment account to the IRA account. These securities paid ...
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5answers
644 views

What should I do with my $25k to invest as a 20 years old?

I have been fortunate enough to learn the skills necessary for a decent paying job at a fairly young age in computer engineering. I have $25k in my checking account, and I need a sensible means of ...
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1answer
100 views

What are the tax implications of exchanging one fund for another in a tax-sheltered account?

What are the tax implications (if any) for exchanging one fund for another in a tax sheltered account (Roth IRA)? e.g. Changing from, say, a Life Strategy Fund to a Target Retirement fund.
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3answers
500 views

How to diversify IRA portfolio given fund minimum investments and IRA contribution limits?

I recently opened a Roth IRA. Most of the funds at the fund company (Vanguard) have a minimum initial investment of $3000. The IRA contribution limit is $5500. This means I can only buy into one ...
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1answer
54 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. ...
1
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1answer
47 views

Do I include a spouse's Traditional IRA when converting my non-deductible Traditional IRA into a Roth IRA?

I have a Traditional IRA funded with non-deductible funds (in addition to a Roth IRA) and my spouse has a Traditional IRA funded 100% with deductible funds. I'm interested in converting 100% of my ...
6
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1answer
260 views

Already did my taxes for the year 2013 and received my return. Can I still contribute to my Roth IRA for the year 2013?

So I already did my taxes this year and received my return. I am curious if I am still able to contribute to my Roth IRA for the 2013 year even after having done so, as I understand you can contribute ...
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1answer
58 views

Change IRA contribution year

About two weeks ago, I opened a Roth IRA account and bought into a fund with $3000, the minimum investment. I designated the contribution as for the 2013 tax year. However, looking over my 2013 IRA ...
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1answer
93 views

Vanguard fund, Roth IRA, and 1099

About a week ago, I opened a Roth-IRA and purchased a Vanguard life strategy fund (VASGX), made the contribution for 2013 Tax Year. I should get q 1099, correct? How long does this normally take?
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1answer
75 views

Fund Roth IRA for previous year after filing taxes

I've filed my taxes for 2013 already and my wife and I have received our refund. We are under $181,000 MAGI for 2013 and expect to be below it in 2014. I have a work sponsored 401k retirement plan, ...
1
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1answer
186 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 ...
2
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1answer
76 views

What happens to a cashed out Roth IRA in a divorce settlement?

The husband's Roth can be cashed out (has had it over 5 years and is over 59 1/2). The wife has been granted the Roth in the property settlement. The wife needs the cash. If the husband cashes ...
2
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1answer
238 views

Contributing to a Roth IRA while income tax filing status is “Married Filing Separately”?

Most of 2013 I was married, though there was a portion of the year that I was single. Because my spouse and I have unusual work situations (mixture of self-employment, business ownership, and ...
6
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2answers
171 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 ...
5
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2answers
390 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 ...
4
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3answers
126 views

Maxed out Roth IRA already & don't have access to a 401k. Any alternatives with tax benefits?

I have no employer retirement plan ( 401(k), 403(b) ) and so I have contributed to a Roth IRA. Are there any other retirement options for me that have some tax benefits? I am a graduate student (not ...
4
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1answer
257 views

Are there any consequences for investing in Vanguard's Admiral Shares funds instead of ETF's in a Roth IRA?

I have a Roth IRA with Vanguard, and I saw this question: What is the difference between shares and ETF? about the differences between Admiral Share funds and ETFs. I've also seen stuff talking about ...
3
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2answers
116 views

Can you re-contribute withdrawn Roth IRA contributions?

This year I contributed the maximum of $5500 to a Roth IRA. I (foolishly) withdrew all of it later in the year, both principal and growth, bringing the balance of the Roth IRA to $0. Is it safe for me ...
7
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1answer
54 views

How is money in a Roth IRA classified as either “earnings” or “contribution” (basis)?

I have heard that if you withdraw money from your Roth early, there is no penalty or tax as long as it is a "contribution". However "earnings" cannot be withdrawn early without paying tax and 10% ...
8
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3answers
462 views

Did basically all mutual funds have a significant crash in 2008?

I am interested in starting a Roth sometime in the near future, but I'm worried about an economic downturn like 2008 eating up a lot of my savings at some point in my life. Did most mutual funds take ...
4
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1answer
75 views

Why has the contribution limit for IRAs increased so much over the years?

According to Wikipedia the maximum contribution rate for a Roth IRA was 2000 dollars in 1998. In 2013 the contribution limit was 5500 dollars. This appears to be an increase of a little less than 7% ...
6
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1answer
59 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 ...
3
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1answer
177 views

Does it make sense to max out contributions earlier in the year?

Let's say a person is making regular monthly contributions to his/her Roth IRA, HSA, and 401K with employer match, up to annual limits. All contributions are put into index funds. Assuming this person ...
6
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2answers
585 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 ...
3
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1answer
315 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 ...
7
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2answers
205 views

Why is there an income restriction on contributing to a Roth IRA?

Currently, single adults making more than $112,000 ($178,00 for couples) per year cannot use Roth IRAs I was just wondering what the reasoning behind the income restriction was for the Roth IRA ...