Questions tagged [ira]

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

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2answers
105 views

Self Directed IRA take over current mortgage?

My family and I currently live in a townhome. We are interested in buying a single family home which will be our primary residence. We would like to keep this home and rent it out as an investment ...
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1answer
68 views

High Expense Ratio and High Return vs Low expense ratio and low return

I am currently investing in a Traditional IRA account using T Rowe Price. The two funds I am investing are as follows: Global Technology Fund (PRGTX) Gross expense ratio - 0.86% Average Annual Total ...
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1answer
57 views

IRA rollover to meet minimum income for ACA subsidy

Can I use a rollover from a traditional to Roth IRA to meet the minimum income necessary to qualify for ACA subsidies in 2022? I do not qualify for Medicaid, and am buying insurance for a family of ...
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0answers
61 views

Is the IRA early withdrawal penalty less than benefit from EITC?

I am hoping someone could check my math on this. If my income is about $45,000 with two children and I put $1000 into a pre-tax IRA my understanding is that it ups my EITC by about $210. That is ...
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2answers
58 views

Best time to take Beneficiary IRAs Required Minimum Distribution for reinvestment?

I have a Beneficiary IRA and have been reinvesting the RMD from it each year by putting it in a Roth IRA of my own. My understand is I can take the withdrawal any time during a calendar year and have ...
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3answers
313 views

Is a company 401k better than a IRA?

Company is moving to a poorly rated 401k provider. If I keep the money in company 401k I can take advantage of dollar cost averaging with poor fund choices. If I rollover to an IRA I can invest as I ...
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1answer
61 views

Two IRAs and RMDs

An investor, who is over 75, has two different IRAs. If the first IRA has an RMD of $4000 and the second IRA has an RMD of $6000, can he satisfy both RMDs by taking out $10,000 from the first IRA? I ...
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2answers
283 views

can I retroactively make a Roth contribution based on an amended 2020 return?

In 2020, wife and I filed separately. She was unable to make an IRA contribution (a deductible one, at least) due to being highly-paid and covered by a retirement program at work, and I was unable, ...
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1answer
104 views

Self-Employed near retirement needing to start a retirement account

My father is 58, with no retirement accounts. He's run a sole-proprietorship for most of his life with 0-1 employees and doesn't have too much in savings. We're exploring the options of a ...
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2answers
96 views

Best Option to Fix Roth IRA Excess Contribution For 2021

I have maxed out my Roth IRA contribution this year (2021) not knowing there was a limit due to my income. To put it simply, I only qualify for $5k and I put in $6K. The IRA has now grown to about $8k ...
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2answers
479 views

Post Tax Traditional IRA vs Normal Mutual Funds Account

I am setting up a Traditional IRA account and this will have my post tax contributions. Traditional IRA does not have any income limit but the contribution limit is $6000 (married filling jointly). If ...
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2answers
133 views

What is the advantage of making charitable contributions (CCs) from one's IRA over just writing checks?

From time to time, I see an enthusiastic tip about how neat it is to make one's charitable contributions from one's IRA, in lieu of taking all or a part of one's RMD. I don't see the point. The ...
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1answer
51 views

When 401K gets rolled over to a rollover IRA OR Traditional IRA gets rolled over to Roth IRA, do the stock units get preserved?

Consider a traditional 401K getting rolled over to a rollover IRA. When such a rollover happens, do the stocks and mutual funds get sold and the total sum gets transferred as cash into the new account ...
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1answer
117 views

Is it possible to to rollover 401K into an IRA account multiple times with different employers?

Say I am employed with company 'A' with whom I have a 401K account. Now, while switching jobs, I decide not to carry forward this 401K to the next employer but instead rollover this 401K I had with ...
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1answer
45 views

Net unrealized appreciation only applies to pre-tax 401k?

I just want to confirm that NUA only applies to pre-tax 401k because a post-tax 401k/ira doesn't have any taxes for withdrawals. Or am I misunderstanding something?
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7answers
3k views

What can we do when we are stuck in a conservative 401(k)?

Right now, I am working as a software contractor and my agency allows 401(k), but only in conservative investments, such as Vanguard Target Retirement 2030, 2035, or S&P 500 index fund, or at most ...
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1answer
248 views

Roth IRA conversion and income limit

If I convert some amount to Roth IRA from traditional IRA, I understand that this will get added to MAGI and I will have to pay taxes on this amount. My husband and I file tax jointly. Will this ...
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1answer
194 views

Why not solely use IRA for investing taxed income

My understanding of IRA is that withdrawing up to amount contributed does not incur tax penalty. So I can basically withdraw any amount of taxed income I contribute. It just seems like too good to be ...
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6answers
5k views

Is there a case against having an IRA?

I am in the United States and I earn an income in the range of $200k/year. I am single with no kids and generally keep my overhead expenses low (car is paid off, my housing cost is very reasonable, ...
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0answers
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Net Unrealized Appreciation (NUA) on Rollover scenario

Finding this as maybe the closest match, to the scenario, I also find that this and this strongly suggest that NUA rules only apply to Employer stock purchases. In other words, if I work for Acme, ...
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1answer
111 views

Transferring deceased owners IRA to my inherited IRA

I am liquidating a deceased owners IRA (I am executor). I have opened an Inherited IRA at another institution. Institution1 has to sell the stocks, open an Inherited IRA for me. I have to initiate ...
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11answers
6k 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
113 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
133 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
56 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 ...
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1answer
594 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
136 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 ...
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1answer
52 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
67 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 ...
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1answer
33 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 ...
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1answer
34 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 ...
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1answer
137 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
73 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
88 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 ...
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2answers
114 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 ...
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1answer
80 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 ...
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2answers
999 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
45 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
255 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
32 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 ...
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1answer
96 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
56 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
52 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
107 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
63 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
41 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 ...
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3answers
225 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
267 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
59 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
30 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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