Questions tagged [roth-ira]
To be used for questions related to Retirement Tax saving scheme Roth IRA as applicable in the United States
703
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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 ...
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5
votes
1
answer
410
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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 ...
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17
votes
1
answer
5k
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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 ...
-2
votes
2
answers
207
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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: ...
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2
votes
1
answer
68
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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 ...
- 705
2
votes
0
answers
59
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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 ...
- 3,006
1
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1
answer
144
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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 ...
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3
votes
3
answers
693
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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,...
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1
vote
1
answer
56
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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 ...
1
vote
1
answer
77
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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 ...
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2
votes
3
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332
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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 ...
- 161
0
votes
1
answer
19
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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 ...
- 161
0
votes
1
answer
38
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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....
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-1
votes
4
answers
118
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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 ...
1
vote
1
answer
73
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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, ...
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1
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60
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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 ...
- 1,635
0
votes
1
answer
56
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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.
...
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1
vote
1
answer
41
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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 ...
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1
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129
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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 ...
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4
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1
answer
430
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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)
...
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-1
votes
1
answer
159
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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 ...
- 250
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1
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91
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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 ...
- 629
0
votes
1
answer
66
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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 ...
- 119
0
votes
0
answers
22
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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 ...
- 119
0
votes
1
answer
115
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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 ...
- 851
2
votes
1
answer
352
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 ...
- 1,635
0
votes
0
answers
158
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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 ...
0
votes
1
answer
53
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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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1
vote
0
answers
26
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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
187
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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 ...
- 1,635
4
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3
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601
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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.
...
3
votes
4
answers
824
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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, ...
2
votes
1
answer
169
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
62
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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
68
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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 ...
0
votes
1
answer
40
views
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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5
votes
3
answers
391
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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 ...
- 217
2
votes
1
answer
86
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
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1
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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
101
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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 ...
1
vote
2
answers
179
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%. ...
- 759
4
votes
2
answers
1k
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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
140
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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 ...
- 193
0
votes
1
answer
60
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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 ...
- 101
2
votes
1
answer
77
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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. ...
- 123
2
votes
1
answer
166
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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.
...
- 759
3
votes
2
answers
449
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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 ...
- 759
1
vote
0
answers
67
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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 ...
- 121
3
votes
2
answers
326
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, ...
- 159
3
votes
1
answer
145
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 ...
- 9,420