Questions tagged [ira]

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

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1answer
153 views

Options for retirement investing if no company 401K available

Due to some unexpected circumstances and poor planning in 2014 neither my wife nor I have been able to contribute to a company run 401K plan. My employer does not offer a retirement plan benefit yet (...
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1answer
2k views

Straight Index Fund vs IRA + Index Fund

I am about to open a traditional IRA and put my money in an Index Fund (to be decided). Which has the advantage that taxes are deferred until withdrawal. It also seems that I have the advantage of ...
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1answer
82 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 ...
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2answers
64 views

Traditional IRA distributions taxation as non-resident

I left the USA for India in 2019, and expect to be a non-resident for US taxation purposes when I turn 59.5. In the India-US tax treaty Article 20 Clause 1 states "Any pension, other than a pension ...
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2answers
190 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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0answers
23 views

Solo 401K with a Solo Roth 401K and MEGA Backdoor Roth

In 2020, I have worked as both a sole proprietor / individual contractor with no employees and as a W2 part-time employee. I am 41 yrs old (under 50) and will have multiple streams of income in 2020: ...
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2answers
417 views

Can I contribute to an IRA from investment income?

Can one contribute to IRA if the income for the year is received from stock sale only (no W2)? What I have been reading is that in order to contribute $X to IRA I need to have earned $X of income, ...
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2answers
230 views

Strategic rollover from traditional to Roth IRA for a young person (pre-retirement)

So we have this: Contributions to traditional IRA: Pre-tax Distributions from traditional IRA: Taxed at the time of distribution Contributions to Roth IRA: Post-tax Growth and distributions (...
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3answers
108 views

Where should we invest substantial proceeds after downsizing in California?

Need to learn where to invest substantial proceeds after downsizing from a California house we bought new 21 years ago, to a smaller California house. Should I stick with mutual funds for income and ...
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1answer
153 views

US Taxes: Missing the deadline for IRA contribution

Is there a way to make an IRA contribution of say $x for 2016 (Deadline was April 15 2017)? Background Info: The $x has already been claimed in taxes. But because of a technical error from the ...
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1answer
198 views

How does the “Married filing jointly and your spouse is covered by a plan at work” IRA deduction work?

Let's say that (as of 2020) I make between $124,000 and $196,000 a year, have a 401(k), my spouse does not work, we are both younger than 50, and we file jointly. In the course of trying to maximize ...
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1answer
166 views

What happens if you stop paying IRA and move to another country long before your retire?

I know this might depend on the bank, but as a general rule, what happens if you are under 50 and you have saved money into an Individual Retirement Account since you are 20, but then decide to move ...
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1answer
88 views

Does 'Taxable Income' from a Roth conversion count as income source for IRA contribution?

Let's assume Jane is retired, and has no income from employment. She still would like to contribute to her IRA [or Roth IRA], but this is not allowed from capital gains or dividend income. Now Jane ...
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2answers
78 views

401k direct rollover to existing IRA? [duplicate]

The instructions I'm looking at (on how to roll over a 401(k) to an IRA) say that I should open a new traditional IRA account. I have one that I've used for a rollover in the past (it was created to ...
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3answers
1k views

Rollover IRA vs traditional IRA (can I make contributions to the rollover IRA?)

I am single and used to contribute to a Roth IRA (my last contribution was years ago), but now my AGI is over the limit to contribute to the Roth. I have a "rollover IRA" that I opened a few years ...
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5answers
8k views

My company is suspending its 401K match; what is the best thing to do with my money?

I am a 25 y/o US citizen working in the US for a US company. Given these days' hard times, my company has elected to suspend its 401k match. I make too much money to contribute to a Roth IRA. What is ...
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1answer
55 views

How can I tell if a target date fund has too many fees?

I've read that when investing in a target date fund (401k or IRA) there are often a lot more fees involved than other funds. These are an easy option though if you're not too sure what to invest in. ...
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1answer
215 views

Source of funds for formation of IRA-owned LLC

I've been reading the excellent book The Self Directed IRA Handbook by Mat Sorensen. My understanding is that I can achieve personal control of the checkbook for my retirement investments by forming ...
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2answers
69 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 ...
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0answers
102 views

Inheriting an inherited IRA from a spouse

If I inherit the following three IRAs from my spouse: Traditional IRA (no RMD yet taken/required; does that matter?) Roth IRA Inherited IRA (spouse inherited from parent) what can I do with the ...
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2answers
118 views

Employee provided 401k account has very limited options. Is there a way I can move to a better account?

My employer-provided 401k has very limited investment options. Mostly I see two options: (1) They have several target-date funds like this: LifePath® Index 2040 Non-Lendable Fund M which supposedly ...
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1answer
94 views

If I invest in futures in my IRA, what am I going to see happen?

I have a Roth IRA with TD Ameritrade. I've been thinking about investing in stock futures in order to get higher expected returns (at the expense of very high risk, of course). I'm wondering what, ...
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1answer
57 views

Can I still contribute to a Roth IRA?

So, I have never contributed to Roth IRA or had an account. I recently started with getting some financial knowledge and got to know that I can still contribute to Roth IRA for 2019 (till July 15, ...
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1answer
325 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 ...
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0answers
48 views

IRA Inheritance

In 2017, my great aunt passed away and she left her estate and retirement account (an IRA) in a will to myself and family members. She was nearly 80 years old and she lived in California. Within one-...
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4answers
588 views

Is there legal reason for restricting someone under 59-1/2 from an in-service rollover from a 401K to an IRA?

There is a lot of confusing information on the internet regarding this. Additionally, there have been changes made by the IRS later than many articles that someone may find by a web search. I have ...
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3answers
1k views

Best starting options to invest for retirement without a 401k

I'm trying to avoid asking a duplicate question, but I feel my situation is more specific than general beginner's saving or investing. I am a university student with a part time job that does not ...
2
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2answers
708 views

Why would an employer not allow their employees to perform a “mega Roth IRA backdoor” (i.e., convert from an after-tax 401(k) to a Roth IRA)?

My employer offers a 401(k) plan through Vanguard to its employees. There exist two types of Roth IRA Rollover: Convert from a non-deductible traditional IRA to a Roth IRA (a.k.a., "Roth IRA ...
2
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2answers
51 views

FICA on Traditional IRA to Roth Coversion

I am aware of the fact that we have to pay taxes on the amount we convert from Traditional IRA to Roth IRA. However, I would like to find out if we have to pay FICA taxes on the conversion. General ...
2
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2answers
169 views

Taxation of traditional to Roth IRA conversion for non-resident

I left the USA in 2019, am now in India and so am a non-resident for US tax purposes for 2020, and want to convert part of my traditional IRA to Roth IRA. What are the tax implications of this ...
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1answer
62 views

Handling excess contributions to Roth IRA

I am new to this, and just started contributing to IRA. I do have a 401k from my employer to which I max out, but I want to try to save more, so I started to look into Roth IRA. In February 2020 I ...
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2answers
79 views

Should I start an IRA account now?

I am interested in opening an IRA account for retirement but have been holding off due to the current swings of the market. I don't want to put say $3000 in an IRA account this year and then loss on ...
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4answers
328 views

Does it make sense to take out student loans to start an IRA?

Let's say you're an undergraduate student, and you're eligible to take out more money than you need to pay for school expenses (at a fixed interest rate of 4.66%). Due to compounding, it's always best ...
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2answers
1k views

Where can I transfer rollover IRA funds to without it becoming income?

I'd like to move untaxed investment money to a new institution. Originally, the money was held in a 401k, then moved to a Rollover IRA. My new bank has both "Traditional IRA" and "Roth IRA" products ...
2
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2answers
185 views

Shifting stocks into retirement account to mitigate taxes

Say you had a non-retirement account with a few different stocks. Some did well, others lost money. If you sold $6k of your worst performing stocks, then funded an IRA account for the year with $6k ...
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2answers
100 views

When we retire and take out the 401(k) and IRA money to buy a house, are we subject to a big portion of tax?

Say, when we get to the age of 65 or 67, and retire, and we take out most of the 401(k) and IRA money, if luckily they can grow to $1,000,000 to buy a second house, all at once, will we be subject to ...
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3answers
157 views

Can a client pay directly into an IRA/401K?

I have a leftover 401K from my previous employer (in fact I have two of them from two different employers). Currently, I am drawing some income as a sole proprietor of a management consulting company....
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3answers
533 views

Is there a point to contributing to a nondeductible traditional IRA?

I, 24 y/o US citizen employed in the US, make over the 137k cut off for making contributions towards a Roth IRA. As a result, I have considered contributing to a traditional IRA. However, I am not ...
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0answers
13 views

Traditional IRA and SEP IRA at the same time

I am self employed through my LLC and I am also employed by a company via W2 What would be my contribution limits to SEP IRA and Traditional IRA? Are my SEP IRA contribution limits separate from my ...
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3answers
83 views

Can I contribute to two different calendar years in an IRA?

I noticed that my broker allows me to contribute to both 2020 and 2021. I have already maxed out my 2020 IRA contributions. Since I cannot deduct anything from my income via these contributions due to ...
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2answers
46 views

Where can I declare that the contribution I made to a traditional IRA was bought with already taxed money?

If I added to my Traditional Ira with after taxed money should I be able to deduct the contribution and do I have to file any special forms to declare that the contribution was purchased with after-...
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1answer
195 views

Should I wait until next year to convert my IRA to Roth?

I'm considering changing my IRA into a Roth IRA. As I understand it, I'll need to pay taxes on all the money I convert. Since the tax brackets for next year will be lowered across the board, does it ...
2
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1answer
71 views

Converted $1 more than the IRS limit when doing backdoor Roth conversion

For doing backdoor Roth conversion I deposited $6000 into my traditional IRA and then converted it a few days later to a Roth IRA account. The money unfortunately earned a little bit of growth when it ...
0
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1answer
108 views

Is a 401k withdrawal considered “earned income?”

I left my job in 2018, where I earned $3000 that year. At that point I had $500 in a 401k plan, which was too small to do a rollover to an IRA, so I cashed it out (after 20% tax I received $400, and ...
2
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1answer
35 views

What happens if I contribute to a SIMPLE IRA after I've already filed US taxes for that year?

I've already submitted my US tax return and received my refund for the 2019 tax year. However I just learned that the IRA contribution deadline was pushed back along with the tax deadline. Due to ...
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1answer
41 views

Direct Trustee IRA transfer

In March 2019, I did a Direct Trustee Transfer from Fidelity IRA (cash account) to a Ally Bank IRA CD. Neither institution has sent any tax paperwork for this. Does this need to be reported on my ...
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1answer
34 views

Can I reverse an IRA contribution and re-make it later on?

Early this year, I made $5,000 in prior-year contributions to a Roth IRA. (I didn't make any IRA contributions last year.) Some time later, I withdrew $3,000 from the IRA, intending to take advantage ...
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3answers
74 views

Can I take a tax loss on Roth IRA conversion?

Because we were over the income limit, my wife and I contributed post-tax dollars to our regular IRAs over the past five years. We would like to do a backdoor Roth IRA conversion while the market is ...
1
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1answer
28 views

Recharacterizing excess Roth IRA contribution more than once

I realized that I have made excess Roth IRA contributions for 2019. I recharacterized $X as contributions to my Traditional IRA. As I was filling out my tax form, it turns out I did not sufficiently ...
3
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1answer
92 views

New hardship distribution rule for retirement accounts in the $2T Stimulus Bill

The recent stimulus bill changes The law temporarily loosens the rules on hardship distributions from retirement accounts. Here's a quote from a WSJ article. https://www.wsj.com/articles/whats-in-the-...

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