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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Excess deferrals to after-tax, non-Roth 401k (just happened this paycheck) – just ask the plan for a reversal? Tax implications? MBDR implications?

It’s hard to google this/find this specific situation for advice. My last paycheck deferral on to my 401k (on 12/8/2023) resulted in exceeding the yearly maximum employer + employee = $66K limit. (2 ...
dbugg's user avatar
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1 vote
1 answer
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Do Transaction Fees Count Towards Roth IRA Contribution Limit?

I'm using Interactive Brokers. I noticed that IBKR charges a transaction fee for the purchase of some funds. Does that transaction fee count toward the Roth IRA contribution limit?
Jeffrey Enriquez's user avatar
2 votes
1 answer
205 views

Tax-Savvy Pre-Retirement Liquidity Cushion, or IRS Surprise? -using put options and an IRA

I have 300 shares in a regular account with basis 166, trading @ 500. I have over 300 shares of the same in an IRA. I plan to sell 300 shares in the IRA; write 3 puts in the IRA for less than $10,000 ...
matt.dolfin's user avatar
1 vote
0 answers
40 views

Tender Offer from Canadian Company as a US investor

I am US investor that holds shares in a Canadian company inside of my ROTH IRA. This Canadian company has recently announced a tender offer at a higher price then the current market price so I am ...
Justin Morrison's user avatar
0 votes
0 answers
50 views

Reduce income to get tax credits by making IRA contributions or "fill up the bucket"?

Let's assume my wife and I have $10K in free cash. We are in the 12% bracket, married filing jointly. Here are the options we are looking at, and we are trying to figure out which one makes more sense ...
tmwn6919's user avatar
  • 107
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2 answers
77 views

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 ...
heretoinfinity's user avatar
2 votes
2 answers
479 views

What is the correct Formula for calculating fund growth with fees

I am considering two different options for a roth IRA. A managed fund that has a higher historical growth rate but 1% fee and a self directed vanguard account, which would have a lower growth rate but ...
achyrd's user avatar
  • 123
1 vote
1 answer
73 views

Inherited Roth IRA distributions and taxes

My mother died this year and I inherited her Roth IRA. I do not need the income from her account and I do not need to pay any extra taxes. I am 61 years old and I plan to be on Medicare when I turn 65....
Bob's user avatar
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6 votes
1 answer
128 views

I inherited a Roth IRA less than 5 years after a conversion, can I wait then take qualified distributions?

I inherited a Roth IRA from a parent. I am a designated beneficiary but not an eligible designated beneficiary. IRS Publication 590-B for 2022, Distributions that aren't qualified distributions, ...
User5910's user avatar
  • 201
1 vote
2 answers
130 views

Working around IRA contribution limits using options

Lets say I have a taxable brokerage account with $1k of shares for ABC. I'm reasonably sure ABC will go down over the short term but don't want to sell it so I buy puts. But since I just opened a Roth ...
swiley's user avatar
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1 vote
3 answers
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How would you balance this scenario?

I have two jobs, one is in the private sector (access to 401k) and one is in the public sector academia (access to 401b/453b) and my wife has a private sector job (access to 401k) and both of us of ...
GµårÐïåñ's user avatar
4 votes
2 answers
534 views

Tracking down old IRAs / 401(k)s

How does one go about tracking down 401(k)s from previous companies? Is there a more convenient method than trying to get in contact with HR from these past companies? I wouldn't mind paying for a ...
skepticalforever's user avatar
1 vote
1 answer
57 views

Tax treatment for minor with Roth IRA and ex-spouse

I want to open a custodial Roth IRA for my 16 year old that has some earned income. As I understand I'll need to prove that contributions aren't exceeding a maximum, which I imagine is just some tax ...
nbeyer's user avatar
  • 113
-1 votes
1 answer
147 views

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 ...
Stefanie Gauss's user avatar
1 vote
1 answer
62 views

How to correct excess contribution to Roth IRA?

IRS has income limits for Roth IRA as given on https://www.irs.gov/retirement-plans/amount-of-roth-ira-contributions-that-you-can-make-for-2023. It is hard for me to guess what would be my modified ...
ewr3243's user avatar
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1 answer
48 views

How to understand "if contributions were made to a SEP IRA, they could potentially reduce the amount you can contribute to your Roth IRA" message?

I received the following message from Fidelity (with whom I have both Roth and SEP IRA accounts): NOTE: SECURE 2.0 Act was signed into law on December 29, 2022. For 2023, if contributions were made ...
NeutronStar's user avatar
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0 answers
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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 ...
Stefanie Gauss's user avatar
6 votes
2 answers
515 views

Best Option to Fix IRA Contributions and Do I Need to Do Tax amendments for Previous Years

Please help!! I contributed $6000 to Roth IRA in 11/3/2020. In 12/22/2020 I contributed to Traditional IRA $6000 (I did not know that $6000 was for the combination of Roth and Traditional). In 1/14/...
Rachid Brah's user avatar
3 votes
1 answer
140 views

Do I need to keep/file "Distribution Statement" for Mega Backdoor Roth IRA?

My new employer offers the Mega Backdoor Roth option. After-tax contributions can be automatically & immediately converted to Roth within the 401(k), and can be rolled over to a Roth IRA at any ...
yoozer8's user avatar
  • 9,505
0 votes
0 answers
25 views

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
5 votes
1 answer
913 views

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 ...
Brian's user avatar
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2 votes
2 answers
92 views

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 ...
Michele's user avatar
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5 votes
1 answer
425 views

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 ...
heretoinfinity's user avatar
17 votes
1 answer
5k views

I withdrew contributions from a Roth IRA. Why is my tax service imposing a 10% penalty? I am only withdrawing contributions, not earned income

I received a Form 1099-R from my brokerage with box 7 (Distribution code) marked with Code J indicating that I will be paying a 10% penalty for withdrawing the money. From my understanding, I'm able ...
largecoconutballs06's user avatar
-1 votes
2 answers
231 views

I earn $1 more and now my Roth IRA is "illegal" or "invalid" in the US? [duplicate]

Because my 401k is limited to a list of about 30 items, I can't buy what I want, such as QQQ or Apple or Google stocks. So the only way for me is to invest in Roth IRA. However, there is this rule: ...
Stefanie Gauss's user avatar
2 votes
1 answer
77 views

Does it make sense to get a 529 plan to convert to Roth IRA in the future?

Given the recent changes on rolling over a 529 plan, could one start a 529 plan and then convert it to a Roth 15 years down the line if they don't use it for any schooling? I haven't considered 529 ...
heretoinfinity's user avatar
2 votes
0 answers
135 views

Does changing 529 beneficiary reset 15-year clock for IRA rollover?

I opened a 529 years ago for my child's college. At that time I listed myself as the beneficiary because it was easy and a 529 beneficiary can be readily changed. Now, with the incoming change to ...
Matthew's user avatar
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2 votes
1 answer
166 views

In the US, if I am afraid my income may be over $153,000 for Roth IRA, is it true I can do the IRA backdoor?

I saw on the Robinhood website that they do IRA and Roth IRA now, and they have a 1% matching, but it says for the Roth IRA qualification for year 2023: Anyone with a MAGI (modified adjusted gross ...
Stefanie Gauss's user avatar
4 votes
3 answers
810 views

How to tell how much of my traditional IRA is pre-tax versus after-tax?

You can convert to a traditional IRA pre-tax or after-tax. All the sites I've found assume you know how much of each happened. I've been contributing for decades, across several employers, rollovers,...
dfrankow's user avatar
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2 votes
1 answer
78 views

Convert Trad to Roth IRA during tax year with capital gains losses

I generally prefer to have my retirement savings in a Roth IRA rather than a traditional IRA, so that my returns earn money tax-free. I have a lot of savings in a traditional IRA that I'd like to ...
canary_in_the_data_mine's user avatar
1 vote
1 answer
138 views

Why is the income limit for Roth IRA contributions for married couples less than double the income limit for singles?

In 2023, you will be able to make a full Roth IRA contribution as a single if you make less than $138,000 per year. However, if you are married and file jointly, you can only make a full Roth IRA ...
Richard Smith's user avatar
3 votes
3 answers
373 views

If form 8606 is not required to submit for just Roth IRA contributions? How does IRS enforce the limit?

If someone is qualified to contribute the full amount($6,000) to Roth IRA, they are not required to file form 8606.Is that right? If yes to above question(meaning not required to file 8606), how will ...
javanoob's user avatar
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1 vote
1 answer
22 views

Question on filing form 8606 for tax year 2020

I am filling form 8606 for tax year 2020 and have below question: Line 8: Enter the net amount you converted from traditional, SEP, and SIMPLE IRAs to Roth IRAs in 2020. Also, enter this amount on ...
javanoob's user avatar
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1 vote
1 answer
46 views

Missed to report Roth and Traditional IRA contributions for tax year 2020. What are my options now?

Background: I gave all my W2s and 1099s for year 2020 to my tax preparer in March/April 2021. He did the calculation and told me that I can contribute $4,270 to Traditional IRA and $1,730 to Roth IRA....
javanoob's user avatar
  • 285
-1 votes
4 answers
121 views

Can I contribute money to a Roth IRA that I had previously withdrawn?

I had contributed $1800 to a Roth IRA for the year of 2021. I had to withdraw $550 of it during the summer but I want to contribute that amount back to the year of 2021 if it is possible. I use ...
largecoconutballs06's user avatar
2 votes
1 answer
85 views

Will I pay taxes twice after doing a Roth IRA -> IRA recharacterization?

I am planning to recharacterize the excess amount of contributions I made to my Roth IRA this year to a traditional IRA account. But, I am worried that, since my Roth IRA contributions are after-tax, ...
Ani Kristo's user avatar
0 votes
1 answer
65 views

Roth IRA contribution limit based on salary if salary changes

I was looking at the Roth IRA Contribution Limit on the schawb.com site here: Roth IRA Contribution Limits I can see how much I'm allowed to contribute based on my salary, but what happens if my ...
Rich's user avatar
  • 1,739
0 votes
1 answer
80 views

How to calculate loss for the purpose of return of excess funds in Roth IRA?

Me and my wife maxed out our Roth IRA contributions for tax year 2022. Few months ago, we both switched to new jobs. Now, our combined income puts us above the income limit to contribute to Roth IRA. ...
haku's user avatar
  • 133
1 vote
1 answer
51 views

How to rollover Solo Roth 401k to Roth IRA

I have a Solo 401k at TD Ameritrade for retirement investing of side-hustle income. This plan comprises two accounts: a traditional (pre-tax) Solo 401k and a Roth Solo 401k. TD recently announced it ...
thomaskeefe's user avatar
1 vote
1 answer
133 views

Can contributing to 401(k) make me eligible for Roth IRA?

In 2022, the Roth IRA contribution limit reduces from $6000 to $0 for as income increases from $129k to $144k (for a single filer). The 401(k) limit is $20,500. If my salary is $145k (too high for ...
yoozer8's user avatar
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5 votes
1 answer
1k views

What are the Italian equivalents of 401K, Roth IRA and Savings account?

I am Italian and I consume a lot of internet content about saving and investing (that's why I am here too!). I often hear or read about: 401K Maxing out your 401K (and meeting your employer's match) ...
Lorenzo's user avatar
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-1 votes
1 answer
464 views

How do I check if I've met my maximum Roth IRA contribution on Vanguard?

How do I check if I've reached the maximum yearly contribution amount for my Roth IRA Brokerage Account on Vanguard? I know that the limit for 2022 is $6,000, but I can't remember if I've contributed ...
Stevoisiak's user avatar
1 vote
1 answer
96 views

If it is a margin call but I am lucky to buy back in IRA, is it considered a "wash sale"?

Due to the stock market going down, I got a margin call, and may be forced to sell a few thousand dollar worth of stocks. However, I am lucky enough because I ended an employment with an agency, and ...
Stefanie Gauss's user avatar
0 votes
1 answer
74 views

Traditional 401k to Roth IRA - do employer matches count as Roth IRA contributions or earnings?

I asked this earlier today but it was incorrectly closed as a duplicate of another question which did not actually answer mine. So re-asking... I understand that Roth IRAs allow withdrawing your ...
Cameron's user avatar
  • 119
0 votes
1 answer
150 views

Roth IRA recharacterizations, 1099-R, and Form 8606

I've accidentally landed myself in a super confusing situation with Roth IRA recharacterizations and would appreciate any pointers. One simplifying factor is that there are only 2 accounts total ...
Stephen's user avatar
  • 871
3 votes
1 answer
373 views

If I sell a stock and buy another in an IRA do I have to do anything when filing taxes?

In an IRA, if I buy a stock and sell it a year or two later but then buy something else without withdrawing any money, is there any paperwork I would need to do when filing taxes during the year when ...
Rich's user avatar
  • 1,739
0 votes
0 answers
232 views

How to withdraw contributions from Fidelity Roth IRA? Fidelity-specific

From my understanding (correct me if I'm wrong), contributions can be withdrawn from a Roth IRA at any time without any penalty. I opened a Roth IRA with Fidelity two weeks ago and contributed $3,000 ...
largecoconutballs06's user avatar
0 votes
1 answer
63 views

Filing a missing prior year 8606 & Effect on future tax return

I am realizing I messed up a previous backdoor roth - this is what my timeline looks like: On 3/1/2020 Deposit 6k to Traditional IRA For Tax Year 2019 On 3/30/2020 Convert 6k to Roth IRA On 12/31/...
user67081's user avatar
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2 votes
0 answers
29 views

How can I undo traditional IRA contribution and contribute to Roth IRA instead? [duplicate]

I made a contribution to my traditional IRA account for 2021. Later I learned from my CPA that since we had already reached the deduction limit of 125k for a couple, we won't be getting any tax break ...
haku's user avatar
  • 133
5 votes
1 answer
192 views

Can I buy whatever I want in an IRA?

I have a Roth IRA and so far I've only contributed to a target fund. If I contribute $500 dollars to the IRA, could I buy whatever I want, such as $500 dollars in Apple stock? If so, when I want to ...
Rich's user avatar
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