Questions tagged [ira]
In the United States, an IRA is an Individual Retirement Arrangement, a tax-deferred retirement account.
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Fastest way to do direct transfer of from bank IRA to brokerage IRA?
I want to transfer a my Synchrony Bank cash IRA to my Vanguard IRA.
Synchrony does not support the ACAT transfer service (Vanguard does)
Vanguard says that it will take 4 to 6 weeks for the transfer ...
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Pro-rata rule and after-tax only Rollover IRA
What-if question.... I have a rollover IRA account that accumulated pre-tax balances from old 401Ks. At the same time I never contributed after-tax money to a traditional IRA.
Would it be beneficial ...
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Can I move monthly pension distributions into a traditional IRA?
As a former public school teacher, my wife gets a monthly check from the state Division of Pensions and Benefits. Is it possible to move that money each month into her Traditional IRA and consider it ...
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Minimizing or avoiding penalty for early withdrawl of IRA and 401k
A friend of mine came to US to work for few years and he is forever going back to his original country because of personal reasons. He contributed to IRA, 401k and would like to take the money with ...
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Interest accrued in Traditional IRA during Backdoor Roth Conversion
Similar to another question: Interest accrued before backdoor roth ira conversion, but I want to highlight a specific nuance of my situation.
In 2023, I contributed the maximum $6500 to my Traditional ...
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Interest accrued before backdoor roth ira conversion
What does one do with the interest accrued ( ~$1) in the money market account in the traditional IRA that shows up before doing the backdoor Roth IRA conversion?
I noticed this amount and it puts me ...
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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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Roth vs Traditional Investing assuming same tax bracket in retirement
I've done a little (simplified) math to determine the difference in investing in a Roth account and a Traditional retirement account.
I'm assuming that I will be in the same tax bracket in retirement ...
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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 ...
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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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IRA in a margin account
I understand that an IRA can't be held in a margin account, or at least margin can't be used. What I didn't know until recently is that the IRS can declare the entire account distributed if it's in a ...
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Move money from former employer's 401k to Roth IRA and Rollover IRA
I am no longer at my former employer but I have an existing 401k plan with Vanguard through them.
30% of the contributions were pre-tax. (traditional 401k)
70% of the contributions were post-tax. (...
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SEP IRA eligibility criteria?
I am trying to determine if I can establish and contribute to a SEP IRA. Here are what I think to be the relevant details and questions.
I receive a W-2 from my day job employer
I have side income ...
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Why do people like Mega Backdoor Roth IRAs?
So, according to me:
Traditional IRA:
Money goes in tax-free
Grows tax-free
Taxed as ordinary income in retirement
Roth IRA:
Money goes in after-tax
Grows tax-free
Tax-free in retirement
(These ...
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Can I take contributions out of traditional or roth 401(k) before 59 1/2 without penalty?
Can I take contributions out of a traditional or roth 401(k) before 59 1/2 without penalty?
I'm basically looking for this table and cannot find it anywhere, please let me know if any of the below is ...
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Does a child own an Education IRA (Coverdell Education Savings Account) upon turning 18?
If I am custodian for an Education IRA (Coverdell Education Savings Account). What happens when the child turns 18 (age of majority)? Do they get control or does it remain with the custodian?
My ...
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Which of my tax-advantaged accounts should I hold my bond market index funds in?
I have traditional, Roth and SIMPLE IRAs. I'd like to get some total bond market index funds (VBTLX).
In terms of taxes, gains, dividends, etc. is there any difference between holding the fund in a ...
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What are "transactions and earnings" within the IRA?
I'm a European citizen who needs, for professional reasons, to understand in broad terms how the IRA works.
I read the wikipedia page, and there is written that "all transactions and earnings ...
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Successor beneficiary to inherited IRA - RMD calculation?
There are so many moving parts to this in the tax code... I keep thinking I understand it but now I'm not sure.
My grandmother died in March 2017, age 93. She had been taking required distributions ...
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IRA withdraw penalties vs interest rates today
Here's a interesting point of view/question. With interest rates near 10% for loans these days - used car loans at 9.06% for someone with excellent credit - are we at a point where it makes more sense ...
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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 ...
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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. ...
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To park cash and have no risk of losing principal, how can I achieve in my IRA or brokerage a counterpart of a bank-like savings account?
I have $50k+ in my personal (taxable) and $50k+ in my retirement accounts. If I am conservative - I use a CapitalOne360 savings account (that in Sep 2016 yields 0.75%).
For my cash in IRA (...
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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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Advice on 401k rollover to IRA
Basic question probably. I m looking for advice on rolling over a portion of amount in my 401k to an IRA.
My needs are: a) to eliminate tax on withdrawal from IRA
b) Have flexibility of withdrawal ...
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Brokerage account vs Roth IRA
In a Roth IRA I can purchase up to $6500 dollars of funds per year. What would the difference be if I had a brokerage account and purchased the same funds? With a brokerage account I wouldn't have the ...
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IRA withdrawal for new construction home and 120-day rule
As per IRS Section 72(t)(2)(F) (paragraph (8)) one can withdraw up to $10,000 for a qualified first-time home purchase penalty-free. The withdrawn funds must be used within 120 days.
If one is buying ...
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Can an IRA contribution with after tax money be deductible?
I am trying to make an amendment for 2020 tax year. In December 2020 I contributed $6000 for Roth Ira and $6000 for traditional Ira (I did not know any better). I used after tax money in both ...
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Can a non-refundable tax credit be used to negate an early withdraw penalty from Traditional IRA?
I'm considering buying a new electric vehicle which would qualify for the US Federal Clean Vehicle Tax Credit.
In theory, I could be eligible for up to a $7500 tax credit.
My current paycheck tax ...
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What happens if Required Minimum Distributions (RMD) is not done or amount is wrong?
My wife inherited an IRA from her late mother. At the time, wife was 66 and MIL was 88. Another QA says RMD (for MIL) starts at 70½ but the manager of a different investment we have says it starts ...
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Required minimum distribution (RMD) for inherited IRA—how long?
My wife inherited an IRA from her late mother. At the time, wife was 66 and MIL was 88. Another QA says RMD (for MIL) starts at 70½ but the manager of a different investment we have says it starts ...
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New Secure 2.0 Act and Charitable Distributions re: Inherited IRAs
I understand that with the new SECURE 2.0 Act it is now possible for IRA holders to combine qualified charitable distributions (QCDs) with a charitable gift annuity vehicle. My question is if anyone ...
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What are the requirements for an older spouse to maintain the RMDs of a younger spouse that has deceased?
Let's say Alice is 78 and Bob is 74, so both are already taking RMDs, and are married. Bob dies, and Alice becomes the owner of Bob's IRA.
According to the IRS here, Alice can continue taking Bob's ...
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Should I sell off my Traditional IRA holdings in the first year I stop working after 60?
Just to experiment with Roth IRA and Traditional IRA, I do have both. I have some holdings in Traditional IRA, but they are more like US$1000 and a few hundred dollars in some other firms.
So let's ...
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Need to amend my tax return to account for initial error reporting IRA contributions, even if tax return is correct after IRA withdrawal?
I contributed $6,000 to an IRA, however I discovered as I was filling out my tax return that I am only eligible to deduct $2,600.
I will withdraw the $3,400 from my IRA (as allowed per Pub 590a), so ...
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I would like to donate my IRA to a certain charity. Will that charity be able to withdraw the money from the IRA tax free?
I don't want to withdraw and pay taxes on the cash in the IRA for obvious reasons. Hopefully the face value of the IRA will be the amount I can count as a charitable gift, but I'm more concerned with ...
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Considering current market situation is it wise to convert 401K account into IRA
This is what I know about 401k and IRA accounts:
401k accounts are employer-sponsored plans, which means that you can only participate in a 401k plan if your employer offers one. IRAs, on the other ...
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My employers "401(k) contribution" is cash, not an actual retirement account. What are my options?
I just took a job that I like, and the line in the offer letter turns out to be misleading (I think through inexperience, not manipulation).
This is it:
You will eligible to receive a 401(k) match of ...
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Is using IRA, Roth IRA, and 401k money between the age of 62 to 70 in general a better choice than claiming social security? [duplicate]
My thinking this: if I don't use IRA, Roth IRA, or 401k money between the age of 62 and 70, but just let it grow, then let's say, if it was $500k at age 62, then if I am lucky to get 10% return per ...
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US rollover IRA for non-resident alien
I am not a US citizen, and I am currently not resident in the US. I lived and worked in the US between 2014 and 2016 and I have a 401(k) from that time. The 401(k) plan is being terminated and I am ...
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Inherited Retirement (IRA) Account (non-spouse)
When my mother passed she left an IRA account that got split up among the kids. I just read an article with the sentence: "If you leave retirement money to your kids or anyone other than your ...
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Under what circumstances could an employee be able to have company provided 401k tax deductible and Trad IRA
Tax software is stating that I am able to take Trad IRA with deduction.
This seems odd as I contributed max amount to employer provided 401k. I was under the impression that fully contributing to 401k ...
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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 ...
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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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Converted Traditional IRA to Roth IRA (backdoor) with money market funds, is that a mistake?
During last year (2022), I wanted to do a typical backdoor Roth IRA. I made a full $6,000 post-tax contribution to my Traditional IRA, waited for the transfer to settle, and then immediately converted ...
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How can I withdraw money from Inherited IRA and credit it to last year?
I'm in a situation where I have a significant amount of money in an IRA that I need to withdraw over the next several years and I want to minimize the tax penalty.
I have some leftover tax credits and ...
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What are the pros and cons of using an IRA distribution as a bridge loan when selling and buying a house?
I'm planning to move to a different region in the US on a tight schedule. I have enough equity in my current primary residence to pay for a down payment on a new home, but since I'm on a tight ...
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Convert Traditional IRA into Roth after deduction submitted to IRS
I recently opened a new traditional IRA account and deposited the maximum contribution for last year (2022 - 6k). Since my 2022 MAGI was low enough (<144k as single), I then amended my already ...
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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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Does the pro rate rule on taxes for backdoor Roth IRA conversion apply if you have multiple Roth NOT traditional IRAs?
This is a follow up of the question here about rolling over traditional IRAs to 401k.
The pro rata rule looks at the amounts in all your traditional IRAs when you do a backdoor Roth conversion. Does ...
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