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Questions tagged [ira]

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

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IRA rolled over mistakenly to 401k

In a previous tax year I rolled over some money from a former employer's traditional IRA (TD Ameritrade) to a non-Roth 401k plan (Milliman). I didn't report this on my federal tax return at all ...
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Does basis remain in Traditional IRA after a complete conversion?

If you convert your entire Traditional IRA to Roth IRA, but the amount you convert (the value of the Traditional IRA at the time you convert) is less than the basis (after-tax amount) in the ...
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My husband became a custodian on our son's 529 plan when my mother-in-law passed . Does the 15 year clock start all over again on IRA Conversion?

My mother-in-law opened an account for our son when he was very young. She died 10 years ago, and the change in custodian resulted in a new account registration. So, although the account looks like it ...
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can SEP contribution be made more than one time for same year

Can a small employer make contribution to SEP similar to 401K with each pay check/1099 or at end of the year for previous year. So for example for 2021 contributions, can one give 10% in January 2022, ...
riya's user avatar
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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 ...
akyeung's user avatar
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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 ...
M Miller's user avatar
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1099-Misc Box 3 Other Income

I am retired and receive a small amount from a family trust for which I am a trustee. When I was working I had more than enough earned income to make the maximun IRA and Spousal IRA contributions ...
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Can You Receive Both a Simple IRA and SEP IRA?

I am the employee of two companies. At one company, I receive a SEP IRA. I know that SEP IRAs are not included in the standard annual elective deferral limit. At the second company, I have the ...
Lloyd Banks's user avatar
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Why do some institutions close IRA accounts when the account holder moves to another country or spends most of their time outside of the US?

I read on the Merrill Edge's traditional IRA application page: Note: If your residence changes (e.g., you move to another country or spend most of your time outside of the United States), Merrill ...
Franck Dernoncourt's user avatar
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If I plan to retire in Puerto Rico, should I move my 401k anywhere?

I plan to retire to Puerto Rico. Should I rollover my 401k directly to an IRA in Puerto Rico or should I keep it in the US?
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Can this Aussie drawdown the funds in 'Traditional IRA ' by way of Credit Card

I am an Australia Citizen by birth. I lived / married an American Citizen (by Birth). My ex Husband set up our IRA's while married. I hold a Traditional IRA with a Financial firm in USA. I am now ...
ozgal's user avatar
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Cashing in a IRA from Puerto Rico

My wife was born and worked in PR prior to our marriage over 20 years ago. She is now 60 years old. She has a IRA in PR. If she cashed out the money do we need to show this as income on our yearly ...
Richard B's user avatar
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How do I pay my ineligible IRA contribution taxes?

This is a follow-up question to I may have made an ineligible contribution to a Roth IRA. What should I do? In 2017, prior to Tax Day, I made a TY 2016 contribution to my IRA that exceeded my 2016 ...
partyphysics's user avatar
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What does "No Sweep" Mean in Citibank Context

I am in the process of opening Traditional IRA account with Citibank (currently have checking and saving account at Citibank) Purpose is to purchase ETF for long-term. Form has section to determine ...
Rhonda's user avatar
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Can earnings reported in boxes 3 or 7 on a 1099-misc be contributed toward an IRA?

I'm trying to understand the 2017 IRA contribution limit as it relates to income reported in boxes 3 "other income" and 7 "Nonemployee compensation" on the 1099-misc. This is money paid to a graduate ...
Matt's user avatar
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Can IRA contributions be recharacterized multiple times

Are there limitations on recharacterizing (not converting) IRA contributions such that you could not re-characterize a contribution multiple times? Recharacterized an Roth IRA to a traditional IRA, ...
vossad01's user avatar
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Is this a viable strategy for avoiding the pro-rata rule for backdoor Roth while maintaining the superior investment options in my non-Roth IRA?

Assume that my 401(k) supports both reverse rollover from IRA and in-service rollover to an IRA. I am doing a backdoor Roth, and want to avoid the pro-rata rule. The general way to do this is to ...
asgallant's user avatar
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Is there any way to pay Vanguard account fees without it counting as an IRA contribution?

I have a small Vanguard traditional IRA that I maintain but don't contribute to. Because I want to continue to get paper statements, there is an account fee that I haven't paid for two years. ...
Jack's user avatar
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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 ...
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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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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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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: ...
kp123's user avatar
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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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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-...
wilberteric's user avatar
1 vote
1 answer
54 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 ...
Yos's user avatar
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How do I record roll over of IRA and CMA into the purchase of service credits on my federal income tax?

I work for the a county government with its own retirement system. I served about 10 years in the military. A couple of years ago I found out my dad had put money in an IRA and a UTMA CMA for me. I ...
Frank's user avatar
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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 ...
user1106278's user avatar
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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 ...
Mister's user avatar
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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 ...
bobwki's user avatar
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Effect of holding a publicly traded royalty trust in a traditional IRA?

Does anyone know what the effect of holding a publicly traded trust like Mesabi Trust (MSB) in a traditional IRA account? This is what I've found so far on the Mesabi website: For income tax ...
AssemblyRequired's user avatar
1 vote
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197 views

Should I open a deferred annuity with my Roth IRA?

first post here... I want to open a Roth IRA with TIAA (I have a 403b with them). I have to fill out the paper form and additional forms since I am from NY. I was sent the Roth IRA enrollment form ...
Jclementi's user avatar
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127 views

When to take inherited IRA to save taxes given low income year with Marketplace premium tax credit?

Summary: Taking a $12k distribution from an (inherited) IRA this year has a nice 10% income tax rate, but effectively additional 14% "tax" due to Healthcare Marketplace (not advanced) premium tax ...
Manbatton's user avatar
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1 vote
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138 views

Inherited deferred comp by minors - tax advantageous approach

If minors who are not currently earning income were listed as beneficiaries on a deferred comp plan and owner of that plan passed away at age 63, what's the right approach to minimize taxes. From ...
g491's user avatar
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1 vote
1 answer
150 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 ...
arcyqwerty's user avatar
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Best traditional IRA investment for working person over 70?

My mother is 71 years old and plans to work at least 3 more years. She only recently opened a money market account (5%) and a traditional IRA. She put the maximum contribution for 2023---$7300---into ...
Eggy's user avatar
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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
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40 views

Post-hoc hardship to avoid early withdrawal penalty (US)

My wife and I took money out of our retirement accounts to pay for emergency repairs to our home in May of 2021. Unfortunately, we were not ordered to relocate or demolish, so it doesn't meet criteria ...
AdamO's user avatar
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Non-deductible IRA contributions withdrawal

Last year (2020), I contributed for the first time to a traditional IRA from my savings, without knowing it would be non-deductible due to my 401k contributions. I think I read that I can withdraw my ...
Carlo's user avatar
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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 ...
Aganju's user avatar
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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 ...
Bob's user avatar
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Traditional IRA to Roth IRA conversion

I want to convert part of my traditional IRA to Roth IRA. Where should I report it on the tax return? I read somewhere that form 8606 is to be filled out but I have not made any non-deductible ...
user2371765's user avatar
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Reversing an IRA contribution?

I contributed $6,000 to my IRA last year but turns out I made too much money to be able to deduct IRA contributions. I've read that I can reverse an IRA contribution if I withdraw the money before ...
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105 views

Lower-cost index funds vs. managed (higher-cost) tax-advantaged IRAs?

If having to choose between a non-retirement lower cost index fund and a managed higher cost IRA (both traditional and Roth), which is less impeded and likely to grow more long-term? Put another way, ...
Aaron's user avatar
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Setting up a tax deferring IRA

I work for a small company, so we have like no resources for helping us understanding benefits. My employer is willing to automatically give me 5% of my annual salary if I set up an IRA account. So ...
Charles H.'s user avatar
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488 views

Self employed 401k and traditional IRA

I've got a self-employed 401k that I use for a small side business, which supplements a full time income I also receive. The 401k contribution allowance is usually small because my business income is ...
Miro's user avatar
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