Questions tagged [roth-ira]
To be used for questions related to Retirement Tax saving scheme Roth IRA as applicable in the United States
529
questions
4
votes
2answers
196 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 ...
2
votes
1answer
40 views
Where to enter earnings income when correcting excess Roth IRA contributions?
I'm correcting excess contributions to a Roth IRA for TY 2019. I understand that the earnings will be taxed in TY 2019 as well, even though they are being returned to me in 2020. Where do I capture ...
2
votes
1answer
71 views
Contribute to non-deductible IRA or something else?
I already have a traditional IRA (rollover from former employer's 401(k)) and my current employer doesn't offer a retirement plan, so I'd been funding a Roth IRA up to the maximum allowed each year ...
1
vote
1answer
65 views
What is the deadline to put money in 2019 IRA
I have Traditional and Roth IRA accounts, where I have not put any money in and I was reading What's the deadline to contribute to a Roth IRA
I am not eligible for a direct Roth IRA. So if I ...
1
vote
1answer
186 views
Contributing to a IRA with a large income?
I recently started a job that pays $150K per year on paper(i.e. my offer letter says my yearly salary will be this) in NYC. In reality, after taxes and all the deductions, I will probably take home ...
2
votes
1answer
69 views
How to tell the IRS about Roth IRA gains on early withdrawal?
I had to give some of my Roth IRA to my ex-wife, and didn't do it in the wisest manner.
How now do I tell the IRS that only about $80 of the $3,570 that I sent to her are taxable and penalizable ...
6
votes
2answers
395 views
Tax efficiency and Roth IRAs
I have a question relating to avoiding investment taxes as compared to maximizing tax free growth in a Roth IRA.
Suppose you have:
$10000 in a Roth IRA
$10000 in a taxable brokerage account
and ...
4
votes
1answer
122 views
How should I distribute investment types between differently-taxed accounts?
Background: I'm 37 and work in the U.S. I have a gross income ~100k, a 401k funded to the legal limit, a Roth IRA funded to the legal limit, and a regular investment account. The 401k has most of the ...
6
votes
2answers
1k views
Roth IRA vs taxable investment account
I'm new to investing, using M1 Finance, and have been doing some overall research.
From what I know, Roth IRA is tax-free income and mostly used as a retirement plan so if I invest in a Roth IRA ...
4
votes
1answer
123 views
Do we need to consider the account balance as limit when converting from Traditional IRA to Roth IRA?
Please consider the following scenario for a Traditional IRA to Roth IRA conversion using Betterment.
A Traditional IRA account was created & funded with $6000.
After a week, the account balance ...
3
votes
1answer
77 views
Do Social Security retirement benefits count when calculating financial aid?
Youngest child is starting college; parent is unemployed. Will the FAFSA consider the following, or will they be ignored for financial aid calculations?
Retirement benefits (social security)
...
3
votes
2answers
89 views
How to decide whether to start drawing Social Security first, or start drawing down from IRAs?
Spouse A is in their mid-sixties and was the lower earner by far. Spouse B is five years younger. They recently became unemployed. Is there a rule of thumb or some other method, that will help them ...
4
votes
2answers
193 views
Conflicting advice about what to do with my 401k / Roth IRA
I left a company that I was at for over 18 years about a year ago. The company I was at was using Fidelity and I had then opened a Roth IRA under Fidelity as well. My Roth only has around 15k and my ...
0
votes
1answer
51 views
Variable Annuity Vs Roth IRA Vs 401K. Pros & Cons of Investment Plans
I'm trying to understand the pros and cons of Variable Annuity products like Mass Mutual Transitions Select.
I worked for a few employers for a short term like 1 to 2 years and had 401K with them. ...
4
votes
2answers
93 views
Does a pro-rata backdoor Roth IRA conversion come from each IRA proportionally or just the one being converted?
Let's say you have $5,000 in a deductible traditional IRA. You want to contribute $5,000 to a backdoor Roth IRA so you open a non-deductible traditional IRA and fund it with $5,000 to convert to a ...
5
votes
4answers
692 views
Income too high for a Roth IRA
I now make too much money to invest in a Roth IRA.
I get no tax benefit from putting money into a traditional IRA since I already have a 401k plan which I max out.
What should I consider investing ...
2
votes
2answers
151 views
Roth IRA Rollover Transferred Twice?
Last week, I initiated a Roth IRA rollover from Brokerage A to Brokerage B. On Friday, the check from Brokerage A was cashed in by Brokerage B, and the funds became available at Brokerage B as of this ...
1
vote
1answer
78 views
Roth IRA excess contribution for current year
Just wanted to confirm - In the current year (2019), I contributed more that $6000, in fact almost double by mistake, as I did not realize my employer was deducting as well, I have both 401k and Roth ...
1
vote
1answer
43 views
Tax treatment of cash bonus for new rollover IRA account
Questions:
Is this considered a contribution subject to things like yearly Roth contribution limits?
Is there any special tax treatment? Such as the cash bonus in regular IRA becoming after-tax ...
1
vote
1answer
175 views
What is a Mega Backdoor Roth IRA?
The so-called "Mega Backdoor Roth IRA" was coined in the following article in 2014:
I don’t hear about new ideas very often, but here is one that a few people might find very useful. I call it the “...
3
votes
1answer
59 views
Can I invest in both SEP IRA and IRA or solo 401(k) if i've worked in W2 for few months and as an independent contractor for the rest of the year?
I worked as a W-2 employee from Jan-Mar and became an independent contractor from Sep this year.My employer did not provide me 401(k) or any benefits. I received around 18K after tax from W2 and I'm ...
4
votes
2answers
206 views
IRA limits with employer 401K
My wife and I both work and both our employers offer 401K plans. When I first started my job 4 years ago they had a policy that required you to work for 1 year before you could start making ...
2
votes
2answers
169 views
Savings strategy for grad students (minimal expenditures and minimal savings)
This is question has been somewhat asked elsewhere:
Savings account vs Roth 401k
Savings Account Rates vs. CD Rates vs IRA CD Rates
Can a Roth IRA be used as a savings account?
However, I wanted to ...
6
votes
1answer
75 views
When calculating Roth IRA contribution limit, is MAGI for previous or current year used?
I was looking into how much I could contribute to a Roth IRA based on MAGI. In 2018, my MAGI was below the amount where contribution limits start to decrease, so I should be able to contribute the ...
1
vote
2answers
133 views
basic retirement planning for someone middle-aged
I'm in my early 40s and haven't done anything for retirement yet. I do own some property which I plan to sell later this year, and I'm planning to use the proceeds to plan for retirement. The proceeds ...
0
votes
1answer
65 views
Roll roth 401k into roth ira before withdrawal to avoid fees?
Say I have a Roth 401k and Roth IRA, and the Roth IRA has been open for more than 5 years.
Since early withdrawals from Roth 401(k)s are prorated between contributions and investment earnings, a ...
6
votes
3answers
638 views
How should I save/invest for my son
I had a son 8 months ago and we opened a savings account for him that already has a few thousand in it from various family members, and I have set up an auto transfer of $50/month into it from my ...
2
votes
1answer
77 views
Roth IRA tax question
I just opened a Roth IRA and will be investing money earned through my job which I have already paid taxes on. Do I have to pay taxes up front on that money again when I invest it in my Roth?
1
vote
3answers
130 views
Is it possible to roll a Roth IRA into a traditional IRA?
I no longer meet the requirements to deposit into my Roth IRA. There's not a huge amount of money in it. Rather than have this relatively small account laying around, requiring periodic monitoring ...
3
votes
0answers
148 views
Should a Canadian working in the USA, invest in a 401k, Roth IRA, Traditional IRA, and/or RRSP?
I have a cousin who is a Canadian citizen working in the USA, asking me about the Canadian RRSP. However being an American I am more familiar with 401k, Roth IRA, and Traditional IRA.
1) From ...
0
votes
1answer
63 views
Rollover different from distribution
Can your rollover deposit be different than what you took out?
To keep the numbers simple, say I withdrew $25k from a Roth IRA and then at the end of the 60 days deposited back into the account $20k....
0
votes
1answer
131 views
IRA Rollover Past 60 Days Because of Bank Mistake
I took out a 60 day rollover for a Roth IRA.
About 50 days in I went into the bank and asked them to deposit the money back into the account.
The bank ended up depositing the funds into the wrong ...
4
votes
1answer
538 views
Investing in a Roth IRA with a Personal Loan?
Okay this might be a dumb question but here it goes.
Does it at all make sense to invest in a Roth IRA contributing the max by taking out a loan? So say I take out a $6k loan at the beginning of the ...
0
votes
1answer
50 views
Method of Earning Calculation For Early Roth IRA Withdrawal
I have a question on how the IRS would calculate earnings on an early Roth IRA withdrawal.
Assume Taxpayer is under 59 and doesn't meet any specific exceptions to cash out early.
Taxpayer ...
5
votes
2answers
751 views
Why do 401k up to company match, then fill Roth IRA, then finish filling 401k?
Places like NerdWallet and the FI/RE community on Reddit suggest contributing to a 401k up to the company match (if one is offered), then maxing out a Roth IRA, and then going back and continuing to ...
1
vote
1answer
57 views
What is a roll-over to a Roth account?
I don't qualify for contributing directly to Roth accounts. I keep hearing about roll-overs but I don't understand how roll-overs interact with my current accounts.
Do I pay taxes on my money (or ...
0
votes
2answers
128 views
Can I contribute to my IRA from 2018 still?
I put in my tax filing for 2018 that I had contributed $5500 to a Roth IRA, but due to technical difficulties with my investment account I didn't get around to funding it until now, but it looks like ...
0
votes
1answer
39 views
Can an IRA contribution be made on the same date of the tax deadline and still count for that tax submission?
The deadline for taxes and IRA contributions for FY2018 in USA is April 15, 2019. If I haven't made a contribution yet for FY2018, can I go to a bank on Monday, April 15, 2019 and make a contribution ...
3
votes
2answers
86 views
Roth counting toward 401k maximum
Vanguard is showing me that my Roth contributions are counting toward the $19,000 401k maximum. I thought Roth counted towards a separate $6000 maximum.
Is my Roth not an IRA?
2
votes
0answers
45 views
U.S. Amending Tax - Should a 1040x be made if I forgot to include 1099-r but there is no difference in taxable income?
I was notified last year when I went to the tax office that I didn't include a 1099-r early distribution.
This is the distribution in question:
I am confused because the TurboTax UI shows my ...
3
votes
0answers
119 views
How can you leverage the benefits of an older spouse's retirement account?
Can a marriage with a large age gap and a young high-earning spouse benefit from, for example, a Roth IRA?
Let's say Jack and Jill are married. Jill is 50 and makes $25,000/year while Jack is 25 and ...
1
vote
2answers
124 views
Broker Didn't Invest the Roth Contribution in the Tax Year They Said They Did - Now We are Behind. What can we do?
The short story is:
In the spring of 2016, we gave our broker a check to max out our Roth IRA contributions for the tax year of 2015 (check was written and cashed by the broker before April 15 in ...
1
vote
1answer
37 views
Selling ETFs in Roth IRA fund, in exchange to buy Bonds tax implications
I would like to sell ETFs in my Roth IRA fund, in exchange to buy Bonds.
What are the tax implications of this?
Even if the money is still held in the Roth IRA fund, would I get taxed?
5
votes
2answers
827 views
Taxes on Dividends in a Roth IRA
Do I have to pay taxes on dividends that I receive from stocks in my Roth IRA? I'm aware that I won't pay taxes on my money if I take it out after age 59.5 or if I take out less than or equal to the ...
1
vote
1answer
110 views
Do scholarships and PhD stipends count as taxable compensation for Roth IRA limits?
The maximum amount you are allowed to contribute to a Roth IRA in a given year is either a certain dollar amount or your “taxable compensation”, whichever is lower. Now I am a PhD student who gets ...
1
vote
1answer
161 views
I accidentally recharacterized nondeductible IRA contribution to Roth
In 2018, I made a catch-up contribution($1000, nondeductible) to traditional IRA). Then by mistake, instead of Roth conversion, I accidentally requested "recharacterization to Roth" which I didn't ...
1
vote
1answer
36 views
Will Receive K-1 from Trust: Roth IRA
I apologize if this question is not warrant asking. Though I was wondering if taxable income earned by the trust distributed on the K-1 form would qualify me as the trustee to contribute to a Roth IRA....
4
votes
1answer
173 views
How to properly compare pension vs Roth IRA?
I am trying to compare the benefits of a federal pensions system FERS vs simply investing the money myself with a Roth IRA. I'm assuming that I work in a federal job for several years, but retire ...
0
votes
1answer
156 views
Why is it a good idea to invest only in a Roth IRA or a no-load mutual fund invested in an indexed fund of the Dow or S&P 500?
Basing this question on this answer from a popular Quora writer:
This is just a matter of simple math.
Saving accounts earn less than 1% per year.
CDs usually pay less than 2.75% per year....
1
vote
0answers
44 views
Excess Roth IRA Contribution - How to Capture Earned Interest No 1099 r?
I contributed over the limit to my Roth IRA in 2018. I realized this and have withdrawn the excess contribution plus earnings in 2019, and have not yet filed my 2018 tax return. My Financial advisor ...
