Questions tagged [ira]

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

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Advice on 401k rollover to IRA

Basic question probably. I m looking for advice on rolling over a portion of amount in my 401k to an IRA. My needs are: a) to eliminate tax on withdrawal from IRA b) Have flexibility of withdrawal ...
SomeDude's user avatar
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2 votes
3 answers
1k views

Brokerage account vs Roth IRA

In a Roth IRA I can purchase up to $6500 dollars of funds per year. What would the difference be if I had a brokerage account and purchased the same funds? With a brokerage account I wouldn't have the ...
Rich's user avatar
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2 votes
1 answer
35 views

IRA withdrawal for new construction home and 120-day rule

As per IRS Section 72(t)(2)(F) (paragraph (8)) one can withdraw up to $10,000 for a qualified first-time home purchase penalty-free. The withdrawn funds must be used within 120 days. If one is buying ...
Oleg Shirokikh's user avatar
0 votes
2 answers
75 views

Can an IRA contribution with after tax money be deductible?

I am trying to make an amendment for 2020 tax year. In December 2020 I contributed $6000 for Roth Ira and $6000 for traditional Ira (I did not know any better). I used after tax money in both ...
Rachid Brah's user avatar
1 vote
1 answer
52 views

Can a non-refundable tax credit be used to negate an early withdraw penalty from Traditional IRA?

I'm considering buying a new electric vehicle which would qualify for the US Federal Clean Vehicle Tax Credit. In theory, I could be eligible for up to a $7500 tax credit. My current paycheck tax ...
Mike B's user avatar
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1 vote
1 answer
72 views

What happens if Required Minimum Distributions (RMD) is not done or amount is wrong?

My wife inherited an IRA from her late mother.  At the time, wife was 66 and MIL was 88.  Another QA says RMD (for MIL) starts at 70½ but the manager of a different investment we have says it starts ...
WGroleau's user avatar
  • 997
0 votes
1 answer
53 views

Required minimum distribution (RMD) for inherited IRA—how long?

My wife inherited an IRA from her late mother.  At the time, wife was 66 and MIL was 88.  Another QA says RMD (for MIL) starts at 70½ but the manager of a different investment we have says it starts ...
WGroleau's user avatar
  • 997
0 votes
1 answer
42 views

New Secure 2.0 Act and Charitable Distributions re: Inherited IRAs

I understand that with the new SECURE 2.0 Act it is now possible for IRA holders to combine qualified charitable distributions (QCDs) with a charitable gift annuity vehicle. My question is if anyone ...
AA040371's user avatar
  • 321
1 vote
1 answer
86 views

What are the requirements for an older spouse to maintain the RMDs of a younger spouse that has deceased?

Let's say Alice is 78 and Bob is 74, so both are already taking RMDs, and are married. Bob dies, and Alice becomes the owner of Bob's IRA. According to the IRS here, Alice can continue taking Bob's ...
Craig W's user avatar
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-1 votes
1 answer
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Should I sell off my Traditional IRA holdings in the first year I stop working after 60?

Just to experiment with Roth IRA and Traditional IRA, I do have both. I have some holdings in Traditional IRA, but they are more like US$1000 and a few hundred dollars in some other firms. So let's ...
Stefanie Gauss's user avatar
1 vote
1 answer
82 views

Considering current market situation is it wise to convert 401K account into IRA

This is what I know about 401k and IRA accounts: 401k accounts are employer-sponsored plans, which means that you can only participate in a 401k plan if your employer offers one. IRAs, on the other ...
OpenStack's user avatar
  • 137
7 votes
2 answers
3k views

I would like to donate my IRA to a certain charity. Will that charity be able to withdraw the money from the IRA tax free?

I don't want to withdraw and pay taxes on the cash in the IRA for obvious reasons. Hopefully the face value of the IRA will be the amount I can count as a charitable gift, but I'm more concerned with ...
Dahere's user avatar
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0 votes
0 answers
46 views

Is using IRA, Roth IRA, and 401k money between the age of 62 to 70 in general a better choice than claiming social security? [duplicate]

My thinking this: if I don't use IRA, Roth IRA, or 401k money between the age of 62 and 70, but just let it grow, then let's say, if it was $500k at age 62, then if I am lucky to get 10% return per ...
Stefanie Gauss's user avatar
12 votes
5 answers
8k views

My employers "401(k) contribution" is cash, not an actual retirement account. What are my options?

I just took a job that I like, and the line in the offer letter turns out to be misleading (I think through inexperience, not manipulation). This is it: You will eligible to receive a 401(k) match of ...
pixelearth's user avatar
0 votes
1 answer
61 views

US rollover IRA for non-resident alien

I am not a US citizen, and I am currently not resident in the US. I lived and worked in the US between 2014 and 2016 and I have a 401(k) from that time. The 401(k) plan is being terminated and I am ...
Tom's user avatar
  • 263
8 votes
1 answer
1k views

Inherited Retirement (IRA) Account (non-spouse)

When my mother passed she left an IRA account that got split up among the kids. I just read an article with the sentence: "If you leave retirement money to your kids or anyone other than your ...
AA040371's user avatar
  • 321
1 vote
1 answer
67 views

Under what circumstances could an employee be able to have company provided 401k tax deductible and Trad IRA

Tax software is stating that I am able to take Trad IRA with deduction. This seems odd as I contributed max amount to employer provided 401k. I was under the impression that fully contributing to 401k ...
paulj's user avatar
  • 1,111
0 votes
0 answers
24 views

Unrelated Business Taxable Income (UBTI) exceeding limit in IRA

I've kept an MLP stock in an IRA for several years not wanting to deal with the K-1 tax complexities. However it looks like this year my Unrelated Business Taxable Income (UBTI) will exceed the $1000 ...
public wireless's user avatar
5 votes
1 answer
900 views

Converted Traditional IRA to Roth IRA (backdoor) with money market funds, is that a mistake?

During last year (2022), I wanted to do a typical backdoor Roth IRA. I made a full $6,000 post-tax contribution to my Traditional IRA, waited for the transfer to settle, and then immediately converted ...
Brian's user avatar
  • 153
5 votes
1 answer
774 views

How can I withdraw money from Inherited IRA and credit it to last year?

I'm in a situation where I have a significant amount of money in an IRA that I need to withdraw over the next several years and I want to minimize the tax penalty. I have some leftover tax credits and ...
BWhite's user avatar
  • 161
2 votes
2 answers
90 views

What are the pros and cons of using an IRA distribution as a bridge loan when selling and buying a house?

I'm planning to move to a different region in the US on a tight schedule. I have enough equity in my current primary residence to pay for a down payment on a new home, but since I'm on a tight ...
Roy Tinker's user avatar
2 votes
2 answers
89 views

Convert Traditional IRA into Roth after deduction submitted to IRS

I recently opened a new traditional IRA account and deposited the maximum contribution for last year (2022 - 6k). Since my 2022 MAGI was low enough (<144k as single), I then amended my already ...
Michele's user avatar
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5 votes
1 answer
420 views

Does the pro rate rule on taxes for backdoor Roth IRA conversion apply if you have multiple Roth NOT traditional IRAs?

This is a follow up of the question here about rolling over traditional IRAs to 401k. The pro rata rule looks at the amounts in all your traditional IRAs when you do a backdoor Roth conversion. Does ...
heretoinfinity's user avatar
5 votes
1 answer
213 views

IRA to HSA transfer - do the funding limits apply?

A person has $60,000 in his traditional IRA with a cost basis of 0. He has the right kind of health insurance. Can he do a one time transfer of the $60,000 to his HSA? That is, do the normal HSA ...
Bob's user avatar
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-1 votes
2 answers
221 views

I earn $1 more and now my Roth IRA is "illegal" or "invalid" in the US? [duplicate]

Because my 401k is limited to a list of about 30 items, I can't buy what I want, such as QQQ or Apple or Google stocks. So the only way for me is to invest in Roth IRA. However, there is this rule: ...
Stefanie Gauss's user avatar
5 votes
2 answers
575 views

Can I move monthly pension distributions into a traditional IRA?

As a former public school teacher, my wife gets a monthly check from the state Division of Pensions and Benefits. Is it possible to move that money each month into her Traditional IRA and consider it ...
Daniel Goldfarb's user avatar
3 votes
2 answers
89 views

Do withdrawals from an inherited IRA count towards the earned income tax credit?

The question says it all. Do withdrawals from an inherited IRA count towards the earned income tax credit?
user5389726598465's user avatar
2 votes
3 answers
128 views

What are the reasons to avoid rolling over IRA into 401k plans?

Are there reasons for and against doing this? For I can only think of having more options for what securities to buy in IRAs since 401k options are limited. Against The only reason to do the IRA ...
heretoinfinity's user avatar
3 votes
1 answer
326 views

Contribution limit differences between 401k and IRAs

Is there a reason why the contribution limits of these are drastically different with the 401k limits being about three times higher? Moreover, why is it that the 401k limits go up over the years but ...
heretoinfinity's user avatar
2 votes
1 answer
160 views

In the US, if I am afraid my income may be over $153,000 for Roth IRA, is it true I can do the IRA backdoor?

I saw on the Robinhood website that they do IRA and Roth IRA now, and they have a 1% matching, but it says for the Roth IRA qualification for year 2023: Anyone with a MAGI (modified adjusted gross ...
Stefanie Gauss's user avatar
1 vote
2 answers
44 views

Investing max tax-deferred IRA contribution Dec 2022 vs Jan 2023 for contribution year 2022

If contributing for tax year 2022 into a tax-advantaged IRA ETF, is there any benefit waiting until Jan 2023 vs Dec 2022? I am remembering something that happens at end of year with ETFs?
paulj's user avatar
  • 1,111
4 votes
3 answers
724 views

How to tell how much of my traditional IRA is pre-tax versus after-tax?

You can convert to a traditional IRA pre-tax or after-tax. All the sites I've found assume you know how much of each happened. I've been contributing for decades, across several employers, rollovers,...
dfrankow's user avatar
  • 637
2 votes
1 answer
62 views

Convert Trad to Roth IRA during tax year with capital gains losses

I generally prefer to have my retirement savings in a Roth IRA rather than a traditional IRA, so that my returns earn money tax-free. I have a lot of savings in a traditional IRA that I'd like to ...
canary_in_the_data_mine's user avatar
6 votes
3 answers
430 views

Financial efficiency - purchasing a car with cash from retirement withdrawal vs. by financing

When someone in their retirement is purchasing a car, is it financially more efficient for them to take a lump sum of cash out of a deferred-tax retirement account (and pay income tax on it), or is it ...
Keith's user avatar
  • 195
1 vote
0 answers
57 views

Do I need to file 8606 amendment to correct "total basis in traditional IRAs" value?

Form 8606 line 2: Enter your total basis in traditional IRAs. See instructions . This value was entered as 0 but it should not be. Otherwise, everything else is same. Do I need to file form 8606 ...
javanoob's user avatar
  • 285
3 votes
3 answers
350 views

If form 8606 is not required to submit for just Roth IRA contributions? How does IRS enforce the limit?

If someone is qualified to contribute the full amount($6,000) to Roth IRA, they are not required to file form 8606.Is that right? If yes to above question(meaning not required to file 8606), how will ...
javanoob's user avatar
  • 285
1 vote
1 answer
21 views

Question on filing form 8606 for tax year 2020

I am filling form 8606 for tax year 2020 and have below question: Line 8: Enter the net amount you converted from traditional, SEP, and SIMPLE IRAs to Roth IRAs in 2020. Also, enter this amount on ...
javanoob's user avatar
  • 285
2 votes
1 answer
34 views

Where can I find tax year 2020 IRA contribution limits?

Where can I find tax year 2020 IRA contribution limits? IRS website shows info for only 2022 and 2021. There are other websites that have this info but I want to be certain by confirming with IRS.
javanoob's user avatar
  • 285
1 vote
1 answer
45 views

Missed to report Roth and Traditional IRA contributions for tax year 2020. What are my options now?

Background: I gave all my W2s and 1099s for year 2020 to my tax preparer in March/April 2021. He did the calculation and told me that I can contribute $4,270 to Traditional IRA and $1,730 to Roth IRA....
javanoob's user avatar
  • 285
3 votes
1 answer
104 views

at age 65 should I still keep $190k in traditional IRA mutual funds, or start moving it to non-IRA mutual funds? [closed]

And, I want to keep the full $190k invested. What are strategies that I should consider?
Doug Null's user avatar
  • 676
9 votes
4 answers
2k views

Am I really required to set up an Inherited IRA?

Due to death of a parent, I am beneficiary to a defined contribution employer retirement plan of type 403(b). The assets are pre-tax, a dozen or so mutual funds with names like "Stock Index Fund&...
311411's user avatar
  • 235
2 votes
1 answer
79 views

Will I pay taxes twice after doing a Roth IRA -> IRA recharacterization?

I am planning to recharacterize the excess amount of contributions I made to my Roth IRA this year to a traditional IRA account. But, I am worried that, since my Roth IRA contributions are after-tax, ...
Ani Kristo's user avatar
1 vote
2 answers
92 views

Contribute to IRA when covered by 401(k)

401k situation : Both my partner and I have employer that provide 401(k) coverage and the employer matches certain percentage. We max out these options My 401k plan doesn’t give my much flexibility/ ...
money.frictionlesspulley's user avatar
4 votes
1 answer
193 views

Possible to open multiple IRA accounts from the same institution?

Let's say I already have a traditional IRA account with a brokerage, and I've used it for tax deduction last year. Now, I want to use the backdoor Roth conversion method. From what I have ready, I ...
fatdragon's user avatar
  • 143
2 votes
1 answer
35 views

How to contribute capital from 401k or IRA to a Series LLC?

I am new to this thread and I'm seeking some basic advice or comment for this matter. Please assume that any investment risks are taken into consideration. Objective: I would like to bootstrap an ...
Phill Alexakis's user avatar
3 votes
1 answer
364 views

If I sell a stock and buy another in an IRA do I have to do anything when filing taxes?

In an IRA, if I buy a stock and sell it a year or two later but then buy something else without withdrawing any money, is there any paperwork I would need to do when filing taxes during the year when ...
Rich's user avatar
  • 1,715
1 vote
3 answers
139 views

What happens when I exceed IRA contribution limit due to rewards?

I recently opened an IRA account with Fidelity. They have some sort of reward program running where they give additional $100 for qualifying accounts. So if I contribute $6000 and Fidelity contributes ...
haku's user avatar
  • 133
2 votes
2 answers
50 views

Distributed from wrong IRA account last year. Any way to correct?

We distributed $47k from wife's (age 52) regular IRA last year, 2021, to improve home. Realize now we should have distributed from my (age 64) regular IRA instead. Now we're paying penalty for early ...
Doug Null's user avatar
  • 676
1 vote
1 answer
86 views

Need to amend my tax return to account for initial error reporting IRA contributions, even if tax return is correct after IRA withdrawal?

I contributed $6,000 to an IRA, however I discovered as I was filling out my tax return that I am only eligible to deduct $2,600. I will withdraw the $3,400 from my IRA (as allowed per Pub 590a), so ...
IRA Oopsie's user avatar
2 votes
0 answers
29 views

How can I undo traditional IRA contribution and contribute to Roth IRA instead? [duplicate]

I made a contribution to my traditional IRA account for 2021. Later I learned from my CPA that since we had already reached the deduction limit of 125k for a couple, we won't be getting any tax break ...
haku's user avatar
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