Questions tagged [ira]

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

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6
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2answers
935 views

Is it more difficult to cash in an IRA with multiple funds?

If my Roth IRA has contributions to multiple different funds will it be any more difficult to get the money out when it's time to retire? Would I just sell each of the funds and close the account or ...
0
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0answers
44 views

IRA contributions income limit [duplicate]

I never calculated my MAGI, but I don't have any student loans, educational expenses or anything like that for that matter. I just claim standard deduction every year. My net income this year is going ...
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3answers
223 views

Consolidate Rollover IRA into my Roth IRA

I have a Rollover IRA from 2016 and I want to move that money into my Roth IRA account. Can I just sell and transfer that money to the Roth IRA with no penalties (no taxes)? Also, that wouldn't count ...
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0answers
26 views

Tax-free (or low tax) investments for US citizen residing in the UK?

I am a US citizen residing in the UK (long-term, possibly including in retirement). My spouse is also a US citizen, and my children have dual citizenships. Are there any investments available to us ...
1
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1answer
81 views

do the covid-based rules affect when you inherit an IRA?

Given that a traditional IRA owner that died in 2019 (at 95) and had multiple beneficiaries (all people), normally the rules states that the inherited IRA would have to be inherited by all of the ...
1
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1answer
35 views

Rolling over funds from a traditional IRA into an Individual 401(k) to avoid the pro-rata rule

I expect that in 2022, my income will exceed the deduction limits for a traditional IRA, so any contributions I make to it will be non-deductible. My understanding is that once I make a non-deductible ...
2
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1answer
39 views

Are 401k and IRA contributions reduced for new, part-year, US residents?

Suppose I move to the US partway through the year and start working. I will file a dual-status tax return. My employer offers a 401k plan and I want to contribute as much as I am permitted. I ...
1
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2answers
95 views

Is 401(k) plan without any matching like an IRA?

I might take a software contracting job, and the agency has a 401(k) plan, but just 0% matching. But it seems a little bit weird: what does it mean, is it a way for us to put more money in than an IRA ...
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1answer
47 views

If I quit my job, will I be able to deduct IRA contributions if I file jointly for 2020

I'm working on filing my 2020 taxes (married filing jointly) and realized that I will owe about $5000 due to reducing 401k contributions last year. I researched and found that it may be possible for ...
1
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1answer
29 views

Overpayment at time of 401k withdrawal, during 2020

If, during 2020, one did an early withdrawal funds from a 401(k) and/or IRA, and one elected for extra withholding (above its final tax rate), when would that get returned? Is it handled with the tax ...
2
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3answers
147 views

Is a backdoor ROTH IRA contribution still worth it if I have pre-tax IRAs that I can't rollover to a 401k yet?

Starting this year, I can no longer contribute to my ROTH IRA. I have three other IRAs: A rollover IRA (pre-tax), opened in 2020 when I rolled over an old 401k. A SIMPLE IRA (pre-tax), opened in 2020 ...
2
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1answer
254 views

Can a Non-Working Spouse with Only Social Security Income Contribute to an IRA?

In the United States, if a man over 50 retires and has only Social Security income---yet his wife continues to work an earns income in excess of $14,000 can the couple still contribute $14,000 ($7,000 ...
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1answer
53 views

Contribution to rollover IRA in 2020

I am retired and rolled over my 401(k). My husband has earned income for 2020. And he has retirement plan in his work. We already contributed $7000 each to Roth IRA. Can I contribute another $7000 to ...
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0answers
25 views

IRA to IRA Roth “Recharacterization” vs “Conversion”, is there a difference in result?

Let's assume this simplified case: At the beginning of 2020, there is no money in my IRA. I contribute the maximum amount allowed (for me 7k$, because I'm old) from after-tax money, and next day ...
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0answers
37 views

Is there going to be a penalty waiver for IRA withdrawals in 2021?

If a person is having a hard time in 2021 and he is under 59.5 decides to take a withdrawal from his IRA, under current law he is subject to a 10% penalty. Now congress is debating another COVID ...
2
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2answers
74 views

I cannot do Traditional IRA. But I can contribute to Roth IRA. Can I do the non deductible IRA at the same time?

I am not eligible for Traditional IRA this year (2020). But I am still under the limits for Roth IRA. I will contribute to Roth IRA in full. I heard that there is a Non-deductible IRA. Can I do the ...
16
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5answers
5k views

When I retire, should I really pull money out of my brokerage account first when all my investments are long term?

Preparing to retire and I've looked at a lot of info on the internet and it all says the same thing: pull money out of your high taxed brokerage account first so you leave all that tax deferred money ...
2
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4answers
100 views

Does a traditional IRA actually save you capital gains tax?

A traditional IRA is tax deferred, meaning you will pay ordinary income tax on withdrawals once you are at least 59 1/2 years old. My question is that since you are paying taxes upon withdrawal and ...
3
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1answer
88 views

Is my understanding of the different types of IRAs correct?

I have been getting a bit confused by the variety of IRA accounts available to me and want to check that my understanding of each is correct, in a general sense (ignore complexities like 5 year rules, ...
2
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3answers
102 views

Should I rollover my Fidelity 401(k) to a Vanguard IRA?

I'm leaving a job where I have a Fidelity 401(k). I plan to rollover my Fidelity 401(k) into an IRA after I leave the job. I like Fidelity. But most of my portfolio is invested in Vanguard ETFs, and I ...
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2answers
21 views

can I move a rollover IRA account with bought stocks, mutual funds from one company to another?

Somebody told me I can move my rollover IRA account from one financial company to another. I am wondering can I do this with existing investments? I have bought some stocks and mutual funds in my ...
2
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1answer
79 views

Can a Roth 401(k) be transferred somehow to a Roth IRA if younger than 59.5-year-old and not leaving one's job?

I understand that: A Roth 401(k) may be rolled over to a Roth IRA if older than 59.5-year-old or if leaving one's job. It is possible to do in-service distributions from an after-tax 401(k) to a Roth ...
2
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1answer
89 views

Roth 401(K) and a traditional IRA

If an individual has net earnings from self-employment of $3000 and he contributes $3000 to a Roth 401(K) can he also contribute to a traditional IRA? That is, does the contribution to the Roth 401(K) ...
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4answers
222 views

Why contribute monthly to an IRA rather than a brokerage account?

Hypothetically, if I had a long term investment in mind (let's use FNCMX) that I believed would perform well enough annually to allow me to retire at an early age, (call it 40 years old) what ...
2
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1answer
86 views

How can I remedy a Roth IRA contribution which isn't allowed?

I have always contributed the max to my Roth IRA on the first opportunity in the new year, as I did on January 2, 2020. I ended up getting a major raise and bonus in mid-2020 that pushed my income way ...
0
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1answer
53 views

If we can go to Europe, Northern Europe, Asia, to establish a corporation and invest in US stocks, then it is like IRA or 401(k)?

Because there are limitations of IRA and 401(k), such as $7000 or some people use somewhat complicated backdoor to do it "legally" have a higher amount, but also subject to penalties if the ...
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2answers
67 views

What incentives are there to move IRA money into a 401k?

I have both a traditional 401k with my employer and a traditional IRA I opened a few years ago. I opened the IRA since I didn't yet realize you could submit after-tax dollars to a 401k. Is there an ...
0
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2answers
55 views

Transfer money out of IRA using stock options?

Is there a stock option strategy that allows one to transfer money out of an IRA brokerage account into a non-IRA brokerage account without incurring penalty?
0
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1answer
88 views

Backdoor Roth IRA conversion while owning SEP-IRA as well

I have a SEP-IRA from my consulting years, many years ago (I haven't contributed to it in years but it does have a balance). I wanted to setup a backdoor Roth IRA conversion by creating Traditional ...
3
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1answer
58 views

TIAA-CREF mailed me check — how do I roll this over into a Vanguard IRA?

I had $500 sitting in a TIAA-CREF account from over a decade ago. They liquidated all their older assets under $5K and mailed me a check for $400, deducting 20% for federal income tax. Can I roll this ...
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4answers
179 views

Why can't you get a loan against your IRA?

I'm trying to borrow against my IRA but for personal reasons rather than one of the 8-9 approved reasons. Does anyone know why it's prohibited? Is there any way around this?
4
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1answer
362 views

May I use my IRA account to pay off “parent plus” loans?

My spouse and I are 60 yrs old. We paid for our first 3 children's higher education (in state 4 yrs $100,000) and launched them into adulthood without student loan debt, with the understanding they ...
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2answers
70 views

Can I open a Traditional IRA if I have a 401(k) and a Roth IRA?

I have a Roth IRA that I made and a 401(k) account through my employer. I realized that I will be above the income limit to contribute to Roth IRA and saw that I could do a backdoor by putting money ...
0
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1answer
21 views

Spread calls in IRA retirement account and legal rules/regulations (USA)

I have an IRA account (USA) with Fidelity brokerage. I have an ability to do both Calendar and Vertical Spreads options in that particular retirement account. Are there any legal rules and regulations ...
6
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2answers
219 views

Can I tax-deduct income for Traditional IRA during the time I am not covered by new employer's 401(k)?

The IRS states that Traditional IRA tax-deduction eligibly includes Retirement plan at work: Your deduction may be limited if you (or your spouse, if you are married) are covered by a retirement plan ...
3
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3answers
132 views

How are tax rates for Roth and Traditional IRAs determined?

I know Roths are all the rage since they were introduced, but I'm not necessarily seeing how or why they are the way to go. As most of you probably know (but FYI for those who don't), the difference ...
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0answers
30 views

Solo 401K with a Solo Roth 401K and MEGA Backdoor Roth

In 2020, I have worked as both a sole proprietor / individual contractor with no employees and as a W2 part-time employee. I am 41 yrs old (under 50) and will have multiple streams of income in 2020: ...
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3answers
109 views

Where should we invest substantial proceeds after downsizing in California?

Need to learn where to invest substantial proceeds after downsizing from a California house we bought new 21 years ago, to a smaller California house. Should I stick with mutual funds for income and ...
1
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1answer
177 views

What happens if you stop paying IRA and move to another country long before your retire?

I know this might depend on the bank, but as a general rule, what happens if you are under 50 and you have saved money into an Individual Retirement Account since you are 20, but then decide to move ...
3
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1answer
100 views

Does 'Taxable Income' from a Roth conversion count as income source for IRA contribution?

Let's assume Jane is retired, and has no income from employment. She still would like to contribute to her IRA [or Roth IRA], but this is not allowed from capital gains or dividend income. Now Jane ...
2
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2answers
84 views

401k direct rollover to existing IRA? [duplicate]

The instructions I'm looking at (on how to roll over a 401(k) to an IRA) say that I should open a new traditional IRA account. I have one that I've used for a rollover in the past (it was created to ...
3
votes
1answer
254 views

How does the “Married filing jointly and your spouse is covered by a plan at work” IRA deduction work?

Let's say that (as of 2020) I make between $124,000 and $196,000 a year, have a 401(k), my spouse does not work, we are both younger than 50, and we file jointly. In the course of trying to maximize ...
17
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5answers
8k views

My company is suspending its 401K match; what is the best thing to do with my money?

I am a 25 y/o US citizen working in the US for a US company. Given these days' hard times, my company has elected to suspend its 401k match. I make too much money to contribute to a Roth IRA. What is ...
1
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1answer
59 views

How can I tell if a target date fund has too many fees?

I've read that when investing in a target date fund (401k or IRA) there are often a lot more fees involved than other funds. These are an easy option though if you're not too sure what to invest in. ...
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2answers
140 views

Employee provided 401k account has very limited options. Is there a way I can move to a better account?

My employer-provided 401k has very limited investment options. Mostly I see two options: (1) They have several target-date funds like this: LifePath® Index 2040 Non-Lendable Fund M which supposedly ...
1
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0answers
105 views

Inheriting an inherited IRA from a spouse

If I inherit the following three IRAs from my spouse: Traditional IRA (no RMD yet taken/required; does that matter?) Roth IRA Inherited IRA (spouse inherited from parent) what can I do with the ...
4
votes
1answer
61 views

Can I still contribute to a Roth IRA?

So, I have never contributed to Roth IRA or had an account. I recently started with getting some financial knowledge and got to know that I can still contribute to Roth IRA for 2019 (till July 15, ...
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0answers
49 views

IRA Inheritance

In 2017, my great aunt passed away and she left her estate and retirement account (an IRA) in a will to myself and family members. She was nearly 80 years old and she lived in California. Within one-...
2
votes
2answers
260 views

FICA on Traditional IRA to Roth Coversion

I am aware of the fact that we have to pay taxes on the amount we convert from Traditional IRA to Roth IRA. However, I would like to find out if we have to pay FICA taxes on the conversion. General ...
1
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1answer
68 views

Handling excess contributions to Roth IRA

I am new to this, and just started contributing to IRA. I do have a 401k from my employer to which I max out, but I want to try to save more, so I started to look into Roth IRA. In February 2020 I ...

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