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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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 ...
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Traditional 401k to Roth IRA - do employer contributions count as Roth IRA contributions or earnings? [duplicate]

I understand that Roth IRAs allow withdrawing your contributions before age 59 1/2 with no penalty. At my old job I had a Roth 401k, but my employer's match went to a Traditional 401k, and I'd like to ...
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  • 119
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1 answer
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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 ...
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  • 851
2 votes
1 answer
344 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 ...
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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From my understanding (correct me if I'm wrong), contributions can be withdrawn from a Roth IRA at any time without any penalty.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 ...
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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/...
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0 answers
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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 ...
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4 votes
1 answer
182 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 ...
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4 votes
3 answers
559 views

When is the earliest I can withdraw contributions from a Roth IRA?

I'm considering putting a few thousand dollars or so into a Roth IRA. The tax due date is in a few days and I want to finish it now because I think I have to report Roth IRA contributions on taxes. ...
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3 votes
4 answers
812 views

Within a single year, when is the optimal time to contribute to an IRA?

Should I be making my maximum allowable IRA contributions as early as possible in the year (for instance, Jan 1st 2023 for the 2023 contribution), or as late as possible in the year (for instance, ...
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2 votes
1 answer
162 views

Can I roll over my Roth IRA into 401(k), and should I?

I have an Roth IRA through Wealthfront that I opened several years ago. I also have a company 401(k) through Fidelity NetBenefits. Since the Roth IRA is a personal account (no employer match, no ...
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3 votes
1 answer
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Contribute to Roth IRA for year 2021 without ITIN or SSN. (ITIN applied)

Context: I came to the USA via F2 (student visa) in September 2021 after getting married. My husband’s status is resident alien and he has an SSN. Additionally, he was on an F1 visa for the entire ...
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1 vote
1 answer
64 views

Is there any reason I should not be able to recharacterize Excess Roth IRA contributions to avoid the 6% tax hit?

I contributed 6k to a roth IRA early last year for 2021. I later got married and am now over the income threshold entirely. I'm under the impression that the best option to avoid losses is to ...
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0 votes
1 answer
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Doing a Roth IRA transfer this year for last year

I did a simple backdoor Roth IRA for the year 2021 just now i.e. in Feb. 2022. Thus I have not gotten any 1099-R forms for 2021. So do I file this in my 2022 tax return next year? Or can I still file ...
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4 votes
3 answers
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Do I owe any taxes and do I need to report ROTH IRA distribution that was less then the contribution?

If I contributed let's say $4000 of after-tax money to my ROTH IRA early in 2021 and withdrew $3000 later in the year, am I correct in thinking this is not taxable income and I don't need to report it ...
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2 votes
1 answer
75 views

What methods are available to find out how much I've contributed to a Roth IRA?

Problem I have a Roth IRA that I setup as a teenager. I contributed in my teens and early 20s, then focused on my 401k and personal accounts; I picked back up investing in the Roth IRA my late 30s. ...
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2 votes
1 answer
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Does Net Income Attributable during a Roth IRA recharacterization count toward the IRA contribution limit?

At some point during 2021, my income ended up exceeding the limit to directly contribute to a Roth IRA, which was unexpected. At that time, I had already contributed an amount below the limit (let's ...
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1 vote
2 answers
96 views

When a stock held in an IRA takes a downturn, is that a good time to move that asset to a Roth IRA?

I have some traditional IRA funds invested in QuantumScape, and it's down quite a bit since the initial purchase. I want to continue to have some holdings in the company. Would this be a good time to ...
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1 vote
2 answers
167 views

How to choose between Roth IRA and Traditional IRA

I have been contributing to Roth IRA for several years now. At this point my income have jumped up so I cannot contribute to Roth IRA anymore, unless I use the backdoor. Currently, my tax rate is 24%. ...
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4 votes
2 answers
1k views

Roth vs. investing a taxable account [duplicate]

What is the benefit of Roth IRA in comparison to putting the money in a taxable account (stocks or MFs)?
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3 votes
2 answers
125 views

What year AGI applies to Roth IRA contribution limits?

I would like to make my Roth contribution for 2022 as early in the year as possible. There are contribution limits based on Adjusted Gross Income. None of the sources I've read made it clear if it's ...
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0 votes
1 answer
56 views

How should I schedule pulling money from investments for home purchasing?

I'm getting married this year, after some delays for reasons you can probably guess. Afterwards -- so in six months or so -- we are hoping to buy a home. Of my money, roughly a third of it is in cash ...
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1 vote
1 answer
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I'm working for parents for money for Roth IRA. What docs might be needed to support it as earned income?

I'm 58 years old, and living at home with my parents. I do some things to help them out, but they are being a bit generous to let me stay in an addition that my grandmother built on to their house. ...
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2 votes
1 answer
144 views

Re-characterization of Roth IRA to Traditional IRA Form 8606

I just successfully completed my re-characterization of Roth IRA to traditional IRA. I contributed $6000 to Roth IRA. The re-characterization took those $6000 + gains and put them in Traditional IRA. ...
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3 votes
2 answers
411 views

ROTH IRA Contribution (Income Too High) How will I know about penalty?

I am currently looking into 2021 Tax and arranging all the documents. I contributed $6000 (myself) and $6000 (spouse) for Roth IRA contributions. Now I am calculating my income for 2021 Tax and it ...
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  • 651
1 vote
0 answers
63 views

IRAs for US citizens who are non-US residents [closed]

I am a US citizen residing in the UK (for the long term). I understand that I can legally invest in a Roth IRA; however, it seems very difficult to actually open one that will allow me to do so with a ...
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3 votes
2 answers
294 views

can I retroactively make a Roth contribution based on an amended 2020 return?

In 2020, wife and I filed separately. She was unable to make an IRA contribution (a deductible one, at least) due to being highly-paid and covered by a retirement program at work, and I was unable, ...
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3 votes
1 answer
133 views

What can be withdrawn from a Roth IRA without penalty before 59 1/2?

I know that contributions (dollar amount equal to what was directly contributed to the Roth IRA) can be withdrawn tax-free and penalty-free at any time, and that earnings on those contributions will ...
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3 votes
1 answer
158 views

Do employers typically match the contributions you put in proportionally?

My employer goes through Transamerica for our retirement accounts, and it allows us to split up our contributions between a 401k and a Roth account. Since there is a limit to the Roth contributions ...
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2 answers
139 views

Best Option to Fix Roth IRA Excess Contribution For 2021

I have maxed out my Roth IRA contribution this year (2021) not knowing there was a limit due to my income. To put it simply, I only qualify for $5k and I put in $6K. The IRA has now grown to about $8k ...
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5 votes
1 answer
250 views

"High Income Earner" savings / investment options

After 7 years in my profession, I'm finally in a high paying position. I was reminded recently that I needed to be "accumulating wealth", which got me to reading articles. One of the things ...
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1 vote
1 answer
62 views

Can I withdraw my contributions from a Roth IRA early without penalty even if they were rolled over from a Roth401k?

I understand that both Roth 401k and Roth IRA accounts allow withdrawing contributions prior to age 59/12 without penalties. But today I heard someone say that I should NOT roll over my Roth 401k to a ...
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1 vote
1 answer
59 views

When 401K gets rolled over to a rollover IRA OR Traditional IRA gets rolled over to Roth IRA, do the stock units get preserved?

Consider a traditional 401K getting rolled over to a rollover IRA. When such a rollover happens, do the stocks and mutual funds get sold and the total sum gets transferred as cash into the new account ...
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4 votes
1 answer
126 views

Is it possible to to rollover 401K into an IRA account multiple times with different employers?

Say I am employed with company 'A' with whom I have a 401K account. Now, while switching jobs, I decide not to carry forward this 401K to the next employer but instead rollover this 401K I had with ...
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3 votes
2 answers
514 views

What Income is the Roth IRA Income Limit Based On

Background: Last year I was making well under the Roth IRA income limit, but after some raises and bonuses this year, I'm starting to toe the line with the income limit. I've done some research and ...
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3 votes
1 answer
199 views

I contributed to my and my spouse's Roth IRA when she was unemployed. Now she has a job and we will exceed the income limit. What to do?

Back in January 2021, my spouse was unemployed and our joint income for 2021 was (expected to be) less than $198,000. Thanks to that, I contributed $6,000 to my own Roth IRA and $6,000 to the Spousal ...
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0 votes
0 answers
31 views

American Roth IRA, moving abroad

If I set up a Roth IRA in America, can I take out money from it in the future if I'm living outside of the US?
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5 votes
7 answers
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 ...
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2 votes
1 answer
66 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 ...
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8 votes
4 answers
818 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 ...
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1 vote
2 answers
152 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 ...
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2 votes
2 answers
234 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 ...
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1 vote
2 answers
140 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 ...
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9 votes
5 answers
6k 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 ...
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0 votes
1 answer
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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 ($...
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0 votes
1 answer
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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 ...
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  • 103
0 votes
1 answer
138 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 ...
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  • 651
1 vote
2 answers
148 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 ...
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0 votes
1 answer
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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 ...
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  • 103
1 vote
1 answer
861 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 ...
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