Questions tagged [ira]

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

Filter by
Sorted by
Tagged with
1
vote
1answer
36 views

Withholding taxes when removing an excess contribution?

I am attempting to remove an excess contribution made to my 2019 Roth IRA account before 2020 tax deadline. While removing the contribution, Vanguard asks for whether federal and state taxes should ...
1
vote
1answer
53 views

How to solve an IRA fiasco involving excess contributions and incomplete Roth conversion?

I have (what appears to be) a rather challenging situation involving failed backdoor Roth IRA contributions. At a high level, there were excess contributions for the previous tax year, and last year ...
2
votes
1answer
73 views

Does removing excess Roth IRA contribution reduce amount contributed?

The title of this question might not make sense, so let me explain. The "excess" contribution here refers to the full 6000 (filing as single) amount in the situation in which the person is not ...
0
votes
0answers
46 views

Reversing an IRA contribution?

I contributed $6,000 to my IRA last year but turns out I made too much money to be able to deduct IRA contributions. I've read that I can reverse an IRA contribution if I withdraw the money before ...
2
votes
0answers
45 views

Can this Aussie drawdown the funds in 'Traditional IRA ' by way of Credit Card

I am an Australia Citizen by birth. I lived / married an American Citizen (by Birth). My ex Husband set up our IRA's while married. I hold a Traditional IRA with a Financial firm in USA. I am now ...
4
votes
2answers
213 views

Net Worth of Money in IRA vs Roth vs Cash

Consider three people: Person A has $1,000,000 in cash. Person B has $1,000,000 in an IRA or 401(k). Person C has $1,000,000 in a Roth IRA or Roth 401(k). I assume Person A has a higher net worth ...
2
votes
1answer
72 views

Contribute to non-deductible IRA or something else?

I already have a traditional IRA (rollover from former employer's 401(k)) and my current employer doesn't offer a retirement plan, so I'd been funding a Roth IRA up to the maximum allowed each year ...
1
vote
1answer
65 views

What is the deadline to put money in 2019 IRA

I have Traditional and Roth IRA accounts, where I have not put any money in and I was reading What's the deadline to contribute to a Roth IRA I am not eligible for a direct Roth IRA. So if I ...
0
votes
1answer
99 views

I do not understand how investing works in conjunction with an IRA

I understand why/how I should put money into an IRA (basically a CD right?); however, what I don't understand is how investing that money works. So let's say for instance I open up an IRA with ...
1
vote
1answer
191 views

Contributing to a IRA with a large income?

I recently started a job that pays $150K per year on paper(i.e. my offer letter says my yearly salary will be this) in NYC. In reality, after taxes and all the deductions, I will probably take home ...
2
votes
1answer
50 views

Multiple W2s, Traditional IRA Deductions

I changed jobs in the middle of 2019, which means I have multiple W2s. My job in the earlier part of the year did provide me with a 403b retirement plan, so there's a check in the "Ret plan" ...
1
vote
1answer
49 views

How much of an RMD from an inherited IRA with basis is taxable?

My wife received an inherited IRA last year, so took an RMD (required minimum distribution) last year (still under the pre Secure Act rules, thought that doesn't really matter). We got a 1099R for ...
1
vote
1answer
82 views

Does an in-service rollover of a Roth 401(k) to an existing 15 year old Roth IRA incur any tax?

I have a Roth 401(k) and want to roll it over into my existing 15 year old Roth IRA while still employed. Vanguard is the fiduciary for both. Is any part of this rollover considered taxable? I am ...
2
votes
1answer
57 views

Can you roll a traditional IRA into a 401k and do a Backdoor Roth IRA same year?

The following is a situation a few of my friends are in: Significant assets in traditional IRA Income above Roth IRA limits Their 401k plan allows you to roll regular IRAs into it Now, the prorata ...
1
vote
1answer
56 views

IRA withdrawals and taxation as non-resident alien

I left the USA for India in January 2019. I retained my traditional IRA and 401(k) accounts because there is a penalty for premature withdrawals apart from the tax liability. Can I convert part of ...
1
vote
2answers
69 views

SEP IRA Contribution

I opened an SEP IRA account with chase and transferred $500. Do I need to buy bonds or stocks using this amount this year itself or can I buy bonds after 2 years?
3
votes
0answers
66 views

Return of excess employer contribution after transfer to IRA

A few years ago, I had an internship, and had to set up an account with the employer's retirement fund company. A couple of years after leaving the company, I was closing out old accounts, and ...
5
votes
3answers
255 views

Best Way to minimize taxes on 401K distribution?

I recently retired at 57 after 36 years with the same employer. I live pretty frugally and my pension is $90K covers all my normal living expenses. I have approximately $2M in retirement savings most ...
8
votes
1answer
147 views

Do I have to take an RMD from my IRA next year?

I turned 70.5 last year and was required to take my required minimum distribution. I took it, but the laws changed at the end of last year making the new age for RMD at 72. Do I have to take the ...
6
votes
2answers
194 views

Can one generate 'self-employed income' with a friend, to be able to contribute to IRA?

Let's assume A is happily living from interest and capital gains, but for various reasons he would like to contribute to his IRA. The IRS allows only contributions that come from income earned by ...
2
votes
1answer
81 views

Tax Strategy: Take Inherited Traditional IRA deduction now, or let the money ride?

How can I best calculate the fiscal impact of these two choices? Take a $50k distribution from a traditional IRA to offset an expense, thus saving taxes now. Leave the money in the IRA, allowing tax ...
4
votes
1answer
124 views

Do we need to consider the account balance as limit when converting from Traditional IRA to Roth IRA?

Please consider the following scenario for a Traditional IRA to Roth IRA conversion using Betterment. A Traditional IRA account was created & funded with $6000. After a week, the account balance ...
0
votes
1answer
58 views

Federally Recognized Tribal Income

My understanding is that tribal members of a federally recognized tribe who receive income from 1040 on Line 21 as :INDIAN GAMING PROCEEDS, INDIAN TRIBAL DISTRIB, NATIVE AMERICAN DISTRIB receive a ...
0
votes
1answer
61 views

What is the time window to deposit IRA account to handle this year tax benefit?

I don't have a 401K account, but am considering opening an IRA account to save some taxes. How long the time window is available for me to have the IRA account? Also in my understanding in the later ...
0
votes
1answer
82 views

If I am opening an IRA can I put 2x the limit in and say half is for 2019 and the other half is 2020?

I am finally looking to invest and have some cash on hand over my emergency fund. I do not have an IRA but am contributing to my 401K. I opened a betterment account investing in ETFs for general ...
2
votes
1answer
381 views

Buy Land Using Old 401K?

I have a 401K from a job I left ~7 months ago. I'm looking to buy some land and do construction on it. I need to put about $40K down on the land, but I only have ~$30K in savings. What's the best way ...
10
votes
2answers
1k views

529 vs IRA for kids education and future scholarship

I have young kids going in preschool. I have already started investing in 529. However, many of my friends mention that if I invest single penny in 529 plan for my kids, they will miss out on any ...
4
votes
2answers
94 views

Does a pro-rata backdoor Roth IRA conversion come from each IRA proportionally or just the one being converted?

Let's say you have $5,000 in a deductible traditional IRA. You want to contribute $5,000 to a backdoor Roth IRA so you open a non-deductible traditional IRA and fund it with $5,000 to convert to a ...
2
votes
3answers
111 views

Possibly better to pay RMD penalties than to take RMDs?

Could it ever be advantageous for a wealthy retired person over the age of 70-1/2 with significant taxable investment income to intentionally fail to take a Required Minimum Distribution (RMD) from an ...
0
votes
2answers
172 views

Should I contribute more to my 401(k) or IRA?

I am trying to figure out a reasonable strategy for my situation. I make over the limit to write off traditional IRA contributions on my taxes starting in 2020. I currently contribute 8% to my 401k. ...
5
votes
4answers
697 views

Income too high for a Roth IRA

I now make too much money to invest in a Roth IRA. I get no tax benefit from putting money into a traditional IRA since I already have a 401k plan which I max out. What should I consider investing ...
1
vote
1answer
48 views

Tax treatment of cash bonus for new rollover IRA account

Questions: Is this considered a contribution subject to things like yearly Roth contribution limits? Is there any special tax treatment? Such as the cash bonus in regular IRA becoming after-tax ...
1
vote
1answer
176 views

What is a Mega Backdoor Roth IRA?

The so-called "Mega Backdoor Roth IRA" was coined in the following article in 2014: I don’t hear about new ideas very often, but here is one that a few people might find very useful. I call it the “...
0
votes
2answers
63 views

Contributing to IRA account which contains pre-tax income from my rollover 401(k)

I am in my early 30s and I have recently rolled over my 401(k) fund from my former employer into a Traditional IRA account. All the money in this account is pre-tax income. I would like to contribute ...
1
vote
1answer
114 views

Traditional IRA Withdrawal Strategy

My father is retired (age 66) and makes $35K between his pension and Social Security. He also has a traditional IRA with $60K that he is not currently withdrawing from. My mother is currently working (...
2
votes
2answers
135 views

Am I eligible to be fully vested?

I have worked for a company in Illinois for a little more than 2 years and was layoff in 2016 in a "mass layoffs" of 37 employees. My 401K shows two balances: Vested balance: $25,651 and Current ...
1
vote
2answers
37 views

Contribute IRA money to HSA outside of qualified transfer route?

I live in the US. I will be 59.5 on October 31, 2019. I have a Traditional IRA and an HSA (and coverage under a high deductible health plan, as I believe is required for making HSA contributions). ...
4
votes
2answers
207 views

IRA limits with employer 401K

My wife and I both work and both our employers offer 401K plans. When I first started my job 4 years ago they had a policy that required you to work for 1 year before you could start making ...
1
vote
2answers
97 views

Traditional IRA with No Deduction Allowed

Martha is a W-2 employee, lives in the U.S., and works for a company that doesn't offer a 401(k). She is maxing out her traditional IRA every year 2010-2019 but she is not qualified to take any ...
1
vote
5answers
316 views

Refinancing student loans in the context of an impending recession

I am a 23 year old, employed, Software Engineer working for a startup in an inexpensive city in the United States. I make $71k/year plus stock options that incrementally vest over 3 years. I have no ...
1
vote
2answers
133 views

basic retirement planning for someone middle-aged

I'm in my early 40s and haven't done anything for retirement yet. I do own some property which I plan to sell later this year, and I'm planning to use the proceeds to plan for retirement. The proceeds ...
1
vote
3answers
210 views

How to choose between fund managers?

My Situation A few years ago I invested with JP Morgan Chase mutual funds conservatively. Lately I was thinking about opening a more aggressive portfolio for the long term (10-15 years) and put in ...
4
votes
1answer
58 views

Tax considerations rolling SEP IRA over to Roth

I have a SEP IRA with about 125k in it and I'm thinking of rolling it into a Roth so that I can have ready access to the money if I need it before age 59.5 (i.e. I'd like to keep my FIRE options open)....
1
vote
1answer
55 views

any danger doing and in-service withdrawal and having it be a direct roll-over?

I'm eligible (old enough) to take an "in-service withdrawal" from my 401K plan (at fidelity). I want to do a "direct-rollover" to Vanguard (my IRA). I spoke to a fidelity csr and they said they would ...
2
votes
2answers
88 views

Is a distribution triggered by writing a check from one IRA account to another

Is a distribution triggered by writing a check from one IRA account to another IRA account? I have checks for a traditional IRA account at bank-A. I opened another traditional IRA account at bank-B ...
1
vote
2answers
119 views

Tax on IRA and 401K to Roth conversion

I have a 403b account with my employer, a simple IRA account, a SEP IRA account, and a Roth IRA account. My wife has a simple IRA account, a Roth IRA account and a rollover IRA account from a previous ...
1
vote
2answers
232 views

Locked out of my IRA due to incorrect date of birth on account

I had a 401k plan with a company that I left several years ago and since went out of business and so their 401k plan was rolled over into a generic IRA plan. I want to roll the IRA over into the 401k ...
1
vote
3answers
131 views

Is it possible to roll a Roth IRA into a traditional IRA?

I no longer meet the requirements to deposit into my Roth IRA. There's not a huge amount of money in it. Rather than have this relatively small account laying around, requiring periodic monitoring ...
1
vote
0answers
33 views

RMD after annuitizing an annuity in a traditional IRA

I live in the United States and I have an annuity that hasn't been annuitized in a traditional IRA account (IRA A). I need to take a required minimum distribution (RMD) of $8K this year for IRA A. I ...
3
votes
1answer
217 views

During retirement, what if form 8606 is missed one year? Non-deductable traditional IRA contributions

What happens if, during retirement, you miss filing form 8606 one year? Form 8606 is used to track non-deductible contributions to an IRA. In retirement those contributions can't be taken out all at ...

1 2 3 4 5 13