Questions tagged [ira]

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

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23
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11answers
5k views

What is so good about IRAs?

I still don't get what is good about IRAs. For example, in a traditional IRA when you deposit you won't have to pay tax but when you withdraw you still have to pay taxes. So you only benefit if you ...
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1answer
74 views

Converting Portion of 401K Rollover Traditional IRA to Roth IRA

I have a 401K (Pre Tax) plan rollover to a personal Traditional IRA. I also have a Roth IRA account. Currently, I do not contribute to the 401K plan, since it was from a previous employer. I do ...
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2answers
103 views

Best Time for Back Door Roth IRA Contributions

I want to contribute to Roth IRA but due to income limits I cannot. I am already have a Traditional IRA account with funds in it. I can move certain amount to ROTH IRA as a backdoor contribution. My ...
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1answer
51 views

Return of excess 401k contributions after rollover to IRA

Suppose the following: Contribute $50,000 to pre-tax 401k 401k grows by 5% 401k is rolled over to traditional IRA What is the proper course of action to return the excess 401k contribution? What ...
5
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1answer
582 views

What happens to investments inside a 401(k) when rolling it over?

Suppose a 401(k) contains mutual fund investments and is linked to a brokerage account holding various stocks, ETFs, mutual funds, etc. What happens to those investments should the 401(k) be rolled ...
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2answers
125 views

What does “retirement” mean in (ira) account?

ira is abbreviation for (Individual Retirement Arrangement), what I don't understand: what is the relation between (retirement) word and a brokerage account? or does this word have different meaning ...
0
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1answer
46 views

Does the amount converted over from traditional to roth-ira count towards the contribution limits for that year?

IRS has contribution limit of $6000 ($7000 for 50+ individuals) for any given year for contribution to IRA account. Say in a given year, a person decides to convert $3000 from his/her traditional IRA ...
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2answers
59 views

Is there an upper limit to amount of money a person can contribute to a traditional IRA if he is okay making a non tax deductible contribution?

Consider a person who wants to contribute $50,000 to his traditional IRA account per year. Now I know there is a limit of $6000 for tax deductible amount you can contribute to an IRA every year. But ...
0
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1answer
29 views

Is partial amount allowed to be converted/rolled over from traditional to roth-IRA?

Say a person has $50,000 in his/her traditional IRA account. Now due to Now he wants to transfer part of it say $10,000 into a roth-IRA account. Is such a partial roll over to roth-IRA possible? Also ...
0
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1answer
30 views

Will a traditional IRA account's capital gains incur annual taxes, if a person's income is above the limit for tax deductible IRA contributions?

Say a person's income is above the limit of making a tax deductible contribution to a traditional IRA account. If he/she still decides to make a contribution of say $6000 per year to a traditional IRA ...
0
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1answer
126 views

Does a company allow its employees to roll over their 401K money to an external IRA account while being employed?

If a person want's to transfer his/her 401K money to an external traditional IRA account (say Chase) while he is still employed at the company, will his company permit that? The employee might wanna ...
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2answers
61 views

Will rolling over my 401K into a traditional IRA have any tax consequences if modified adjusted gross income (MAGI) is above the IRS income limits?

I currently have a 401K account from my employer. I have had this account for the past 4 years. I wish to have better control over my investments made in this retirement account, so I am considering ...
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1answer
64 views

Is loss disallowed after wash sale involving IRA, but rebought in traditional brokerage first?

I've read horror stories about someone selling stock A for a loss in a traditional brokerage and rebuying the stock in an IRA. Their basis in their IRA does not ever adjust and they cannot ever ...
2
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2answers
69 views

How to move non-deductible traditional IRA contributions to Roth IRA?

I made 3 non-deductible contributions to my traditional IRA account in 2019, 2020, and 2021. Instead, I should have contributed the money to Roth IRA. What would be the best way to fix this? Here is a ...
0
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1answer
58 views

If I don't plan to sell the stock until age 60 or 65 in USA, is it exactly the same in a regular account vs an IRA or 401k account?

With the limitations of how much money we can put in IRA, Roth IRA, or 401(k) account, I just thought, what if we plan to buy the stock and know we won't sell it until age 60 or 65, when our income ...
6
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2answers
990 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 ...
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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 ...
4
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3answers
230 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 ...
1
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0answers
31 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
91 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 ...
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1answer
41 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
43 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 ...
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2answers
99 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
50 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 ...
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1answer
36 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
169 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
258 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 ...
3
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1answer
56 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
27 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 ...
0
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0answers
40 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
76 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
106 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
92 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
116 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
24 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
82 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
92 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
228 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
91 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
57 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 ...
1
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2answers
69 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
60 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
115 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
votes
1answer
59 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 ...
0
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4answers
181 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?
5
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1answer
393 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
75 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
votes
1answer
28 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
222 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 ...

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