Questions tagged [roth-ira]

To be used for questions related to Retirement Tax saving scheme Roth IRA as applicable in the United States

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1answer
38 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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0answers
17 views

How to report returned Roth IRA contributions and earnings in H&R Block software

I'm using H&R Block software for my 2019 taxes. I am over 60 and was successfully able to withdraw my 2019 Roth IRA contributions. (My MAGI is too high.) The tax software indicates I will need to ...
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3answers
52 views

Changing funds in Roth IRA - Tax implications?

I have the following funds in a Roth IRA in a Fidelity account, and am determining if it is worth switching funds for a few of them. I mainly picked these because they have low expense ratios. I'm in ...
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1answer
47 views

Calculating a combined savings percentage when saving pre- and after-tax money

This seems like a really simple and obvious question, but I can't find any previous questions on this site that directly address it. Perhaps it's so simple that people find it trivial. Almost all ...
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0answers
38 views

From unemployed to self-employed/freelancer, how is my 401K & IRA setup?

Recently lost my job and decided to try out the freelancer route. I am in my early 40s and I expect to make about $150k before tax. I have a few questions about setting up a my 401k and IRA. Already ...
2
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2answers
39 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 ...
1
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0answers
29 views

US financial institutions that offer IRA accounts to non-residents? [closed]

I have a Roth IRA investment account worth a tidy sum with my US bank from my time in the US on a work visa. I received a letter this week from my US bank informing me that they are no longer offering ...
1
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1answer
60 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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0answers
14 views

ROTH IRA eligibility for US Citizens working abroad and claiming FEIE (foreign earned income exclusion)

I've been working overseas for the past few years for a US company and claiming FEIE. My annual salary is roughly 200k, which is over the income eligibility requirements for a ROTH IRA. As a work ...
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1answer
39 views

Indian taxation on after-tax retirement accounts such as Roth

How does India tax US after-tax retirement accounts such as the Roth IRA for a person who is a US non-resident for tax purposes starting age 59.5?
6
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1answer
110 views

Can one 'pay' their son so he can contribute to his Roth IRA? [duplicate]

I'm a college student doing some part time work (for my school), and my dad very generously said that he would match my contributions to my Roth IRA if I maxed it out - ie. I pay in 3000 and he pays ...
2
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1answer
69 views

Is selling the contribution in Roth IRA to be avoided if at all possible?

I just heard of the rule stating that the contribution into Roth IRA can be sold at any time, any age, without a 10% penalty or any tax liability? It sounds like an advantage, but it sounds like ...
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1answer
104 views

Are there any penalties when selling my stocks and withdrawing from my ROTH IRA during the 2020 COVID Crisis in May?

I know there is a penalty if I withdraw if I'm under 59 years old. But was there a new law that took effect to let us sell and withdraw from our ROTH IRA without a penalty or tax liability?
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2answers
125 views

Just started a Vanguard Roth IRA at 19 years old starting with $3k in the account. What is the next step in gworing that money? [closed]

How do you become a millionaire by 60 if you start a Roth IRA early? I have heard it said that investing index funds and the like over time, can grow money with compound interests over time, but I'm a ...
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2answers
71 views

Does it matter how many different funds I've contributed to when it's time to withdraw money from my Roth IRA?

I have a Roth IRA and so far I've contributed to the same fund each time. When I retire would it make any difference which funds or how many different funds I had invested in or would all of the money ...
0
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1answer
80 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 ...
1
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1answer
38 views

Roth conversion: why is cost basis the basis of original SEP-IRA investment?

I just converted some money in a SEP-IRA to a Roth IRA. The value of the fund that money was invested in was down about 10% from when I initially invested in the SEP-IRA. Once the transaction was ...
0
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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 ...
2
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1answer
43 views

Can I avoid the penalty if I rollover a SEP IRA to a Roth and then pull out the money?

I have some SEP-IRA money that I am considering rolling over to a Roth IRA. Since Roth contributions can be pulled out without penalty, is it possible to roll over a SEP-IRA to a Roth IRA then ...
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3answers
112 views

Advice: Diversify my retirement investments with a Roth IRA

I am new to investing, and also late to the game (34 yrs old), so I'm trying to make the most financially intelligent decisions I can. I'm starting a Roth IRA at the moment, and funding it with this ...
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2answers
42 views

Can my existing Roth IRA be used as a spousal Roth IRA?

My wife and I both established separate Roth IRAs long ago and contributed over the years until we eventually hit the income limits. Now that I'm retired and my wife is still working, we are again ...
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 ...
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1answer
79 views

How to file taxes for a backdoor Roth and 401(k) roll-in

I am planning to backdoor $6000 into my Roth IRA for 2019, which currently has nothing in it. I have $2500 in a traditional rollover IRA. I was going to put it into the Roth, but due to the ordering ...
2
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1answer
117 views

How should I backdoor my Roth IRA?

I am single and have no dependents, am in my late 20s, and I made an income in 2019 that lies somewhere inside the phase-out section of direct contributions to a Roth IRA. I do not think I have any ...
9
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1answer
424 views

Does the postponed tax-filing deadline affect Roth IRA contribution deadline?

Since Mnuchin has pushed back the filing deadline to July 15th this year (IRS announcement and Notice 2020-18), does that also push back the deadline to contribute to a Roth IRA? irs.gov says this ...
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0answers
14 views

Roth IRA excess contribution: applying excess to future year, how much less to contribute then?

2018: I had an excess contribution = $X to my Roth IRA. The excess contribution was made in 2018, not between January and April in 2019. I'm younger than the Roth IRA withdrawal age. 2019: I am ...
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1answer
78 views

Is there a way to add money to my Roth IRA index fund ONLY if they can buy it at or below a certain price?

Is there a way to add money to my Roth IRA index fund ONLY if they can buy it at or below a certain price? Specifically Vanguard VTSAX since I already have met the minimum requirement (I don't have ...
3
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0answers
94 views

Tax status decision

I left the USA for India on 1/31/2019. I was present in the USA in 2018 but for 15 days, and for the whole of 2017, and in 2016 except for 15 days. Will I be classified as a resident alien, non-...
2
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1answer
135 views

Whats the penalty for withdrawing from my Roth IRA when I day trade with it? [duplicate]

I have 12K in my Roth IRA. I use it to day trade. Now I want to take out the 12K what is my penalty? And do I get taxed on my trades when I buy and sell?
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1answer
72 views

Correcting an ineligible contribution to a Roth IRA

In 2019 I contributed to a Roth IRA, but while preparing my taxes I realized that I am over the income limit for contributing to a Roth IRA. I would like to recharacterize this contribution to a ...
0
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1answer
81 views

Questions about transferring from Roth to Traditional IRA

So I contributed $6000 to 2019 and $6000 to 2020 into a Roth IRA. I bought some ETFs with the $12000 and it’s currently earning. Let’s say the balance is now $13000. Can I transfer $6000 to the 2019 ...
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1answer
50 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 ...
3
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1answer
85 views

How to correct periodic excess Roth IRA contributions, with Direct Rollover within the same timeframe?

In 2019, I accidentally contributed to my Roth IRA, despite my income being over the limit. I made periodic contributions of $200 every month, totaling $2400, which I plan to remove before the April ...
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2answers
169 views

Do I want a 30% cash buffer on my managed portfolio?

I am new to investing. I would not characterize myself as a risk averse person. I was thinking about signing up with Ally bank for one of their managed portfolios, a Roth IRA. They offer what they ...
1
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1answer
73 views

How to solve an IRA fiasco involving excess contributions and incomplete Roth conversion?

I have (what appears to be) a rather challenging situation involving failed backdoor Roth IRA contributions. At a high level, there were excess contributions for the previous tax year, and last year ...
2
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1answer
83 views

Does removing excess Roth IRA contribution reduce amount contributed?

The title of this question might not make sense, so let me explain. The "excess" contribution here refers to the full 6000 (filing as single) amount in the situation in which the person is not ...
1
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1answer
110 views

Excess Roth IRA Contributions calculation?

Due to my income in 2019, I exceeded the Roth IRA contribution limits. Now I am trying to figure out how much to withdraw and how to report it. I have an account with Vanguard. So I have the ...
5
votes
2answers
221 views

Net Worth of Money in IRA vs Roth vs Cash

Consider three people: Person A has $1,000,000 in cash. Person B has $1,000,000 in an IRA or 401(k). Person C has $1,000,000 in a Roth IRA or Roth 401(k). I assume Person A has a higher net worth ...
4
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1answer
124 views

Where to enter earnings income when correcting excess Roth IRA contributions?

I'm correcting excess contributions to a Roth IRA for TY 2019. I understand that the earnings will be taxed in TY 2019 as well, even though they are being returned to me in 2020. Where do I capture ...
2
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1answer
77 views

Contribute to non-deductible IRA or something else?

I already have a traditional IRA (rollover from former employer's 401(k)) and my current employer doesn't offer a retirement plan, so I'd been funding a Roth IRA up to the maximum allowed each year ...
1
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1answer
69 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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1answer
206 views

Contributing to a IRA with a large income?

I recently started a job that pays $150K per year on paper(i.e. my offer letter says my yearly salary will be this) in NYC. In reality, after taxes and all the deductions, I will probably take home ...
2
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1answer
74 views

How to tell the IRS about Roth IRA gains on early withdrawal?

I had to give some of my Roth IRA to my ex-wife, and didn't do it in the wisest manner. How now do I tell the IRS that only about $80 of the $3,570 that I sent to her are taxable and penalizable ...
6
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2answers
407 views

Tax efficiency and Roth IRAs

I have a question relating to avoiding investment taxes as compared to maximizing tax free growth in a Roth IRA. Suppose you have: $10000 in a Roth IRA $10000 in a taxable brokerage account and ...
4
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1answer
127 views

How should I distribute investment types between differently-taxed accounts?

Background: I'm 37 and work in the U.S. I have a gross income ~100k, a 401k funded to the legal limit, a Roth IRA funded to the legal limit, and a regular investment account. The 401k has most of the ...
6
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2answers
1k views

Roth IRA vs taxable investment account

I'm new to investing, using M1 Finance, and have been doing some overall research. From what I know, Roth IRA is tax-free income and mostly used as a retirement plan so if I invest in a Roth IRA ...
4
votes
1answer
130 views

Do we need to consider the account balance as limit when converting from Traditional IRA to Roth IRA?

Please consider the following scenario for a Traditional IRA to Roth IRA conversion using Betterment. A Traditional IRA account was created & funded with $6000. After a week, the account balance ...
3
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1answer
79 views

Do Social Security retirement benefits count when calculating financial aid?

Youngest child is starting college; parent is unemployed. Will the FAFSA consider the following, or will they be ignored for financial aid calculations? Retirement benefits (social security) ...
3
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2answers
94 views

How to decide whether to start drawing Social Security first, or start drawing down from IRAs?

Spouse A is in their mid-sixties and was the lower earner by far. Spouse B is five years younger. They recently became unemployed. Is there a rule of thumb or some other method, that will help them ...
4
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2answers
203 views

Conflicting advice about what to do with my 401k / Roth IRA

I left a company that I was at for over 18 years about a year ago. The company I was at was using Fidelity and I had then opened a Roth IRA under Fidelity as well. My Roth only has around 15k and my ...

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