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
43 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
45 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 ...
3
votes
2answers
107 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 A 10% penalty on what amount: The amount withdrawn?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
54 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
41 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
83 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
56 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
115 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
49 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 ...
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2answers
57 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
62 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 ...
1
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2answers
80 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
35 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
63 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
208 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
64 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
235 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
60 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
111 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
75 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
votes
1answer
60 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
265 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
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2answers
100 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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0answers
66 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
25 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 ...
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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
129 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
341 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
34 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
55 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
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1answer
66 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
66 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) ...
7
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
53 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
70 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
950 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 ...
2
votes
3answers
208 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
56 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
43 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
282 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
93 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
98 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
119 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
122 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
vote
2answers
63 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 ...
4
votes
1answer
129 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 ...
4
votes
1answer
76 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
55 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
77 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
82 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 ...