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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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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3answers
2k views

Is there any reason to invest in stocks, ETFs, etc. outside of a tax-advantaged account?

If you have a tax-advantaged account like a Roth IRA, why would you want to invest in stocks in a non tax-advantaged account like say Robinhood, or E-Trade, etc.? Would the tax-advantaged account be ...
3
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1answer
107 views

Can money received as a gift be used to fund a Roth IRA?

My girlfriend has been saving money to start a Roth IRA. For her birthday, I'd like to surprise her by giving her cash - double what she's saved. It will certainly be under the annual exclusion of $15,...
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1answer
80 views

Withdraw and return Roth IRA contributions?

If I have a Roth IRA with $10k, $8k of which was contributed by me then can I withdraw $4k and put it back? I understand that it won't be taxed since it is already "after-tax" money but ...
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2answers
112 views

How much can I contribute to a Roth IRA?

I worked part time for part of the year, and earned less than the maximum contribution amount, so I can only contribute up to the amount of my income. Which income number is that? Gross pay, net pay, ...
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1answer
74 views

Does automatic roth in-plan conversion preclude my ability to mega backdoor roth IRA conversion?

In my 401k plan I have the option to make after-tax contributions (This is different than Traditional/Roth type accounts) Ignoring all gains for simplicity, my 2020 contributions end up like this: I ...
3
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1answer
194 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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2answers
201 views

With the Presidential “Payroll Tax Holiday” being imposed, should I invest the money in ROTH IRA or Regular Brokerage?

We've had a Presidential order creating a "payroll tax holiday", and the best information I can find about this can be read at Forbes and summarized as follows: No/Reduced federal tax from ...
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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 ...
3
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0answers
99 views

Withdrawing from after tax 401k rollovers to Roth IRA

I have after tax contribution. I have setup Roth in plan conversation. If I rollover that money to a Roth IRA, which I can do since it is after-tax money. Do I have to wait for 5 years to withdraw my ...
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1answer
74 views

Replacing money in Roth IRA after withdrawals?

In a Roth IRA account funded entirely by after-tax 401k rollovers (mega backdoor), is it possible to use the 60 day replacement rule like in this answer assuming only the principal is being taken out ...
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2answers
55 views

Can I choose my Roth IRA contribution belong to 2019 or 2020 made between 1/1/2020 and 7/15/2020?

I am trying to fill my tax return by TurboTax. I saw this: Enter your total Roth IRA contributions for 2019. Note: include contributions made between 1/1/2020 and 7/15/2020 that you want to include ...
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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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0answers
25 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
57 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
49 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
39 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 ...
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2answers
49 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 ...
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0answers
31 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 ...
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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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0answers
15 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
56 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?
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1answer
111 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
71 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
105 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 ...
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1answer
105 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 ...
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1answer
45 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 ...
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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
142 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
44 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 ...
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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
121 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
429 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
15 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
79 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
129 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
141 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?
1
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1answer
74 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
82 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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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 ...
3
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1answer
87 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
200 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
79 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
85 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
117 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
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2answers
222 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 ...

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