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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votes
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 ...
2
votes
1answer
53 views

Recharacterized 2 years of Roth IRA Contributions - how much to invest through Backdoor?

I have mistakenly been contributing to a Roth IRA for 2020 and 2021 while my adjusted gross income (AGI) exceeded the 120k limit. Therefore, I called Vanguard to recharacterize my contributions to my ...
8
votes
4answers
788 views

Can I open a Roth IRA AND get to choose what companies my money is getting invested into?

In my experience with investing in IRAs, it seems like you just tell the people that you want to retire in (insert number of years), tell them how risky you're willing to be with your money and then ...
1
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2answers
134 views

Automated/Least Painful Backdoor Roth IRA + Nuanced Questions

As quick background, I'm an expat that has been living abroad for the past 8+ years, and have been and continue to be ineligible to contribute to an old Roth 401k that I still possess with my previous ...
2
votes
2answers
223 views

Can I pay my baby an income to max out a custodial Roth IRA without paying/filing taxes for him?

I made a huge income jump from a career move right after having a baby. I do not want to do any lifestyle creeping and would rather put this money to work with compound interest. I'll already be ...
1
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2answers
100 views

Can I contribute to my Roth IRA in December and then again in January?

I haven't started my Roth IRA yet, have been procrastinating. So hypothetical question, say I get around to doing it in December, can I make the maximum contribution all at once in that month, and ...
8
votes
5answers
5k views

Company with high match for 401K vs IRA, which to choose?

I am fortunate to be at a company with a pretty high 401K match, 50% with no cap. Normally when I've saved in the past, I've done the 401K up to the amount matched, and then chose other savings ...
0
votes
1answer
62 views

A Complicated Question regarding Roth IRA and backdoor

So here is the scenario. I have 600K in 401K Rollover Traditional IRA (Pre-Tax) I have 30K in Roth IRA I want to contribute to Roth IRA but my income is too high. If I take part of money every year ($...
0
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1answer
51 views

Can rolling over a Defined Contribution Plan to a Roth IRA make investment earnings tax-free while avoiding Roth contribution limits?

My employer offers a Defined Contribution Plan (DCP) where I can contribute after-tax earnings. Investment earnings grow tax-deferred. There is an option to roll over DCP (after-tax) contributions to ...
0
votes
1answer
89 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 ...
1
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2answers
122 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 ...
0
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1answer
34 views

Can you fund your Traditional IRA after rolling it over to Roth IRA?

The Traditional IRA has a $6,000 limit per year. If I Step1: Transfer 6k to Traditional IRA Step2: Roll over entire 6k to Roth IRA Can I transfer additional 6k to Traditional IRA because Traditional ...
1
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1answer
531 views

Roth IRA and pre-IPO shares

With the recent news that a billionaire managed to get several billion dollars in a Roth IRA by funding it from pre-IPO shares of his company, I'm curious about how this works. Ignore for the moment ...
0
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1answer
49 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 ...
-1
votes
1answer
119 views

How much of my 401(k) should I roll over to a Roth IRA to pay the least taxes?

I am 61 yrs old want and I want to start rolling over my 401K to a Roth-IRA account. How can I figure out how much money I should roll over in order to pay the least taxes? Through a google search, I ...
0
votes
1answer
31 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 ...
0
votes
1answer
33 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 ...
0
votes
1answer
62 views

Are there any penalties or tax consequences if an person decides to take money out of a Roth IRA account prematurely?

Say a person has a Roth IRA account. Now the money in the Roth IRA account is already post-tax contributions. However, say the person has made a significant capital gains on their Roth IRA investments....
2
votes
2answers
91 views

Are there annual salary limits to be eligible to contribute to a ROTH IRA account in US?

I am planning to contribute to a ROTH IRA to have a better control on my tax free trading. However I need to know as a single person, if there are certain salary limits to be eligible to make ...
1
vote
1answer
46 views

Contributing to Roth IRA using previous tax year earnings

I am currently a student and I maxed out my Roth IRA contribution for 2020, but I still have “left-over” income saved. Given that I have not yet earned any taxable income for 2021, can I use these ...
1
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2answers
65 views

What tax forms have to filed when doing a rollover from After-tax 401(k) to Roth IRA?

What tax forms have to filed when doing a rollover from After-tax 401(k) to Roth IRA? Examples appreciated.
0
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0answers
34 views

Possible to do rollover from a solo Roth 401(k) to Roth IRA?

I'm self-employed and thinking of opening an individual Roth 401(k) account with TD Ameritrade. I would max out the employee contribution immediately and not bother with the employer match (since the ...
1
vote
0answers
39 views

What are the rules regarding early withdrawal of contributions from a Roth IRA after a rollover from a solo Roth 401(k)?

Plan Open a solo Roth 401(k) (I'm self-employed) and contribute roughly $50,000 during the first year Wait some amount of time, if necessary? Rollover the Roth 401(k) into my existing Roth IRA ...
2
votes
2answers
84 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 ...
2
votes
1answer
79 views

Are there IRS limits for 401k to Roth IRA rollovers?

I am 61 years old and I have two 401k plans from former employers. I want to roll over these 401k plans into a single Roth IRA account over a period of time in several intervals. I would like to know ...
0
votes
1answer
70 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 ...
1
vote
0answers
48 views

401k or Roth IRA for non treaty countries

This might be a bit complicated, so pretty please bear with me a little. I am currently living in USA on a E2 visa. My employer offers both 401k and Roth IRA. I do not plan to neither retire nor ...
2
votes
2answers
247 views

How do you show that "you did not live with your spouse at any time during the year"?

My wife and I will be filing separate tax returns this year. Since I made more than $10,000 modified AGI during 2020, this would normally mean I am ineligible to contribute to a Roth IRA. However, due ...
2
votes
1answer
168 views

Roth IRA Conversion and taking money out

A person who is over 59.5 years of age has an traditional IRA worth 1 million dollars and no Roth IRAs. On Monday, he converts the traditional IRA to a Roth IRA. On Tuesday, due to an unexpected ...
6
votes
2answers
997 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 ...
2
votes
1answer
102 views

2020 Backdoor Roth IRA Conversion in 2021 - Concern/Questions

In 2019, I did a backdoor Roth IRA conversion that went off without any problems (put $6000 into traditional IRA, converted to Roth IRA). In 2020, I was looking to do the same, but I hit a snag. I ...
3
votes
2answers
131 views

Pros and cons of using a Roth IRA to fund home improvements

I have a Roth IRA with a balance of something like $150k. Say around $100k of that is contributions. Due to my income, I am ineligible to contribute to the Roth IRA, but I do maximize contributions to ...
0
votes
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 ...
4
votes
3answers
243 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 ...
6
votes
4answers
991 views

How should I split my contributions to Roth IRA and Roth 401k?

I am in my early 20s and currently contribute ~18% of my income to my retirement accounts, 7% to company sponsored Roth 401(k) (Popular Investment Company) and 11% into my Roth IRA (A "Big 3"...
2
votes
2answers
78 views

Can IRS construe a Roth conversion to be a wash sale?

Should I do Roth IRA conversions after a market crash? I have too much money in my traditional IRA and not enough money in my Roth IRA. Both accounts use VTSAX. I have no intention of touching it any ...
1
vote
3answers
53 views

Can a married person open a personal Roth IRA? If yes then is contribution limit based on last year?

A married person MAGI $170,000 year 2020 income. Spouse doesn’t work $0 income. Can this person open a personal Roth IRA? Or does this Roth IRA have to be owned jointly? Also, is Roth IRA contribution ...
29
votes
6answers
5k views

Is a Roth IRA good for a high schooler?

I am a high-school Senior who will not earn enough income working this summer to have to pay income taxes. I have a full ride to college, so I was thinking of using my earnings/savings for retirement. ...
2
votes
3answers
208 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 ...
0
votes
1answer
50 views

Recharacterization due to Roth IRA overcontribution

In early 2020, I contributed $6000 to my Roth IRA. At the time, my salary was lower, so I didn't think my 2020 AGI would go above 125k. Then I got a new job in mid-2020, which came with a big raise. ...
2
votes
1answer
57 views

Is "Conversion" a technical term in a Backdoor ROTH Conversion?

I'm doing a backdoor ROTH for the first time with Fidelity. My understanding is the process is simple: Create or have a Traditional IRA Create or have a ROTH IRA Put post-tax money into Traditional ...
2
votes
1answer
64 views

Why will I be receiving a 1099-R in January of 2022, for income that is supposed to be reported for tax year 2020?

I overcontributed to my Roth IRA by $2,000 in 2020. I realized this when working on my 2020 taxes this year, so withdrew the excess contribution and respective earnings of $277.50. Now I received a ...
2
votes
2answers
119 views

Roth IRA on Fidelity received a IRS Form 990-T. What is this for?

A family member has a Roth IRA and she just received an IRS Form 990-T from Fidelity. She was mainly trading with her Roth IRA, which was suppose to be tax free until retirement age. Does she need to ...
1
vote
0answers
53 views

Are you taxed on money withdrawn from a Roth IRA to pay for alimony?

A QDRO allows a non-penalized distribution from a Roth IRA due to a divorce but what if money is taken out and used for alimony that is not specified in the QDRO? Form 8606 Part III, Line 19 is where ...
0
votes
0answers
28 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 ...
2
votes
2answers
78 views

I cannot do Traditional IRA. But I can contribute to Roth IRA. Can I do the non deductible IRA at the same time?

I am not eligible for Traditional IRA this year (2020). But I am still under the limits for Roth IRA. I will contribute to Roth IRA in full. I heard that there is a Non-deductible IRA. Can I do the ...
1
vote
1answer
83 views

Why is it better to put taxable bonds in tax-exempt accounts?

Resources like this one suggest putting taxable bonds in tax-exempt accounts and equity index funds in taxable accounts. But the expected return of taxable bonds is much lower than that of equity ...
3
votes
1answer
1k views

Is it forbidden to have more than one Roth account?

Is there any conflict or any rule against having a Roth IRA and a 401k with Roth contributions?
0
votes
1answer
45 views

Rollover IRA and Roth IRA Contribution Limit?

I have a 401k from a prior employer that I quit from a couple of years ago. As I cannot invest in it any longer I have decided to move it into a "Rollover IRA". I already have a Roth IRA. ...
3
votes
1answer
101 views

Is my understanding of the different types of IRAs correct?

I have been getting a bit confused by the variety of IRA accounts available to me and want to check that my understanding of each is correct, in a general sense (ignore complexities like 5 year rules, ...

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