Questions tagged [ira]
In the United States, an IRA is an Individual Retirement Arrangement, a tax-deferred retirement account.
610
questions
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1answer
71 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
54 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 ...
0
votes
1answer
38 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 ...
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2answers
68 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
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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
239 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
138 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
190 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
77 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
121 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
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1answer
54 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
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1answer
60 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 ...
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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
372 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
88 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
110 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
166 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
677 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
37 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
170 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 “...
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2answers
61 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
102 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
134 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
36 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
199 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
96 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 ...
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vote
5answers
314 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
132 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 ...
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vote
3answers
204 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
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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 ...
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2answers
87 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
117 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
230 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 ...
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3answers
128 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
32 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
163 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 ...
3
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0answers
146 views
Should a Canadian working in the USA, invest in a 401k, Roth IRA, Traditional IRA, and/or RRSP?
I have a cousin who is a Canadian citizen working in the USA, asking me about the Canadian RRSP. However being an American I am more familiar with 401k, Roth IRA, and Traditional IRA.
1) From ...
0
votes
1answer
76 views
Should I take money from my beneficiary IRA to invest in index funds?
My father passed a few years ago and left me two beneficiary IRAs. I take my minimum distributions from them once a year ($1000-2000 distributions).
I'm in my late 20s and want to invest in index ...
3
votes
1answer
95 views
What are the limitations on rollovers to an IRA?
My friend wants to consolidate his various retirement account accumulated over the past 20-30 years to make it easier to manage/track his retirement savings. He doesn't recall immediately all the ...
2
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0answers
44 views
Quitting working - where to put 401k money? [duplicate]
My spouse is considering becoming a stay-at-home parent. They currently work and have a 401k. If they do leave their job, and want to rollover the 401k, what's the best investment vehicle to choose? ...
0
votes
2answers
128 views
Can I contribute to my IRA from 2018 still?
I put in my tax filing for 2018 that I had contributed $5500 to a Roth IRA, but due to technical difficulties with my investment account I didn't get around to funding it until now, but it looks like ...
4
votes
0answers
34 views
What, exactly, makes an “unrelated business” unrelated in the case of junior partnerships held inside IRAs?
My question is concerning the unrelated business income tax on partnership interests inside a Roth IRA. Specifically, I own common stock in a company that's technically classified as a Limited ...
0
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0answers
30 views
Change IRA contribution to prior year
I under-contributed to my IRA for tax year 2018. I'd like to apply some of my 2019 contributions to tax year 2018 to reach the 2018 tax year IRA contribution maximum. We have not yet reached to 2019 ...
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1answer
96 views
Traditional IRA how much tax on withdraw
I understand that traditional IRA gives you a deduction now and tax you later when you withdraw. I need a clue on how much tax is charged on withdraw.
Say I deposit $4,000 into traditional IRA and ...
3
votes
0answers
88 views
How can you leverage the benefits of an older spouse's retirement account?
Can a marriage with a large age gap and a young high-earning spouse benefit from, for example, a Roth IRA?
Let's say Jack and Jill are married. Jill is 50 and makes $25,000/year while Jack is 25 and ...
2
votes
3answers
226 views
Selling options to myself… which law does this violate?
If I sell a covered call from my IRA well above market value and use a separate account to buy the call, I've effectively added money to my IRA beyond the IRA's annual limit. (I can ensure I'm buying ...
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0answers
92 views
Now that I'm 59 1/2, should I pay off my HELOC by withdrawing from my IRA?
Maybe someone here can help me figure this out.
I turned 59 1/2, and I have an IRA with about $500K. My wife has recently semi-retired and has started taking her social security, but I am still ...
1
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1answer
154 views
I accidentally recharacterized nondeductible IRA contribution to Roth
In 2018, I made a catch-up contribution($1000, nondeductible) to traditional IRA). Then by mistake, instead of Roth conversion, I accidentally requested "recharacterization to Roth" which I didn't ...
