Questions tagged [roth-ira]
To be used for questions related to Retirement Tax saving scheme Roth IRA as applicable in the United States
723
questions
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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 ...
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1
vote
1
answer
80
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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?
2
votes
1
answer
205
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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 ...
- 133
1
vote
0
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40
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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 ...
- 111
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50
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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 ...
- 107
0
votes
2
answers
77
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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 ...
- 719
2
votes
2
answers
479
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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 ...
- 123
1
vote
1
answer
73
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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....
- 1,540
6
votes
1
answer
128
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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, ...
- 201
1
vote
2
answers
130
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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 ...
- 13
1
vote
3
answers
150
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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 ...
- 1,473
4
votes
2
answers
534
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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 ...
1
vote
1
answer
57
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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 ...
- 113
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1
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147
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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 ...
- 867
1
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1
answer
62
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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 ...
- 181
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1
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48
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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 ...
- 1,322
0
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0
answers
47
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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 ...
- 867
6
votes
2
answers
515
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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/...
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3
votes
1
answer
140
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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 ...
- 9,505
0
votes
0
answers
25
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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 ...
- 584
5
votes
1
answer
913
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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 ...
- 153
2
votes
2
answers
92
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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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1
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425
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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 ...
- 719
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 ...
-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: ...
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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 ...
- 719
2
votes
0
answers
135
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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 ...
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2
votes
1
answer
166
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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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4
votes
3
answers
810
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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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2
votes
1
answer
78
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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
138
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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 ...
- 111
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 ...
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1
answer
22
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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 ...
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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....
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-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 ...
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, ...
- 131
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 ...
- 1,739
0
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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.
...
- 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 ...
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vote
1
answer
133
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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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5
votes
1
answer
1k
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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
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1
answer
464
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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 ...
- 300
1
vote
1
answer
96
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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 ...
- 867
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 ...
- 119
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votes
1
answer
150
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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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3
votes
1
answer
373
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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 ...
- 1,739
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 ...
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/...
- 120
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 ...
- 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 ...
- 1,739