Questions tagged [roth-ira]
To be used for questions related to Retirement Tax saving scheme Roth IRA as applicable in the United States
546
questions
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2answers
38 views
Can my existing Roth IRA be used as a spousal Roth IRA?
My wife and I both established separate Roth IRAs long ago and contributed over the years until we eventually hit the income limits.
Now that I'm retired and my wife is still working, we are again ...
1
vote
1answer
28 views
Recharacterizing excess Roth IRA contribution more than once
I realized that I have made excess Roth IRA contributions for 2019. I recharacterized $X as contributions to my Traditional IRA. As I was filling out my tax form, it turns out I did not sufficiently ...
1
vote
1answer
67 views
How to file taxes for a backdoor Roth and 401(k) roll-in
I am planning to backdoor $6000 into my Roth IRA for 2019, which currently has nothing in it.
I have $2500 in a traditional rollover IRA. I was going to put it into the Roth, but due to the ordering ...
2
votes
1answer
109 views
How should I backdoor my Roth IRA?
I am single and have no dependents, am in my late 20s, and I made an income in 2019 that lies somewhere inside the phase-out section of direct contributions to a Roth IRA. I do not think I have any ...
8
votes
1answer
283 views
Does the postponed tax-filing deadline affect Roth IRA contribution deadline?
Since Mnuchin has pushed back the filing deadline to July 15th this year (IRS announcement and Notice 2020-18), does that also push back the deadline to contribute to a Roth IRA?
irs.gov says this ...
0
votes
0answers
13 views
Roth IRA excess contribution: applying excess to future year, how much less to contribute then?
2018: I had an excess contribution = $X to my Roth IRA.
The excess contribution was made in 2018, not between January and April in 2019.
I'm younger than the Roth IRA withdrawal age.
2019: I am ...
1
vote
1answer
51 views
Is there a way to add money to my Roth IRA index fund ONLY if they can buy it at or below a certain price?
Is there a way to add money to my Roth IRA index fund ONLY if they can buy it at or below a certain price?
Specifically Vanguard VTSAX since I already have met the minimum requirement (I don't have ...
2
votes
0answers
38 views
Tax status decision
I left the USA for India on 1/31/2019. I was present in the USA in 2018 but for 15 days, and for the whole of 2017, and in 2016 except for 15 days. Will I be classified as a resident alien, non-...
2
votes
1answer
129 views
Whats the penalty for withdrawing from my Roth IRA when I day trade with it? [duplicate]
I have 12K in my Roth IRA. I use it to day trade. Now I want to take out the 12K what is my penalty? And do I get taxed on my trades when I buy and sell?
1
vote
1answer
68 views
Correcting an ineligible contribution to a Roth IRA
In 2019 I contributed to a Roth IRA, but while preparing my taxes I realized that I am over the income limit for contributing to a Roth IRA.
I would like to recharacterize this contribution to a ...
0
votes
1answer
75 views
Questions about transferring from Roth to Traditional IRA
So I contributed $6000 to 2019 and $6000 to 2020 into a Roth IRA. I bought some ETFs with the $12000 and itās currently earning. Letās say the balance is now $13000. Can I transfer $6000 to the 2019 ...
1
vote
1answer
50 views
Withholding taxes when removing an excess contribution?
I am attempting to remove an excess contribution made to my 2019 Roth IRA account before 2020 tax deadline.
While removing the contribution, Vanguard asks for whether federal and state taxes should ...
3
votes
1answer
79 views
How to correct periodic excess Roth IRA contributions, with Direct Rollover within the same timeframe?
In 2019, I accidentally contributed to my Roth IRA, despite my income being over the limit. I made periodic contributions of $200 every month, totaling $2400, which I plan to remove before the April ...
1
vote
2answers
141 views
Do I want a 30% cash buffer on my managed portfolio?
I am new to investing. I would not characterize myself as a risk averse person. I was thinking about signing up with Ally bank for one of their managed portfolios, a Roth IRA. They offer what they ...
1
vote
1answer
61 views
How to solve an IRA fiasco involving excess contributions and incomplete Roth conversion?
I have (what appears to be) a rather challenging situation involving failed backdoor Roth IRA contributions. At a high level, there were excess contributions for the previous tax year, and last year ...
2
votes
1answer
78 views
Does removing excess Roth IRA contribution reduce amount contributed?
The title of this question might not make sense, so let me explain. The "excess" contribution here refers to the full 6000 (filing as single) amount in the situation in which the person is not ...
1
vote
1answer
79 views
Excess Roth IRA Contributions calculation?
Due to my income in 2019, I exceeded the Roth IRA contribution limits. Now I am trying to figure out how much to withdraw and how to report it. I have an account with Vanguard.
So I have the ...
4
votes
2answers
216 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 ...
4
votes
1answer
79 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
74 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
67 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
202 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
72 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
402 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
126 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
128 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
78 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
92 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
198 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
52 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
101 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
719 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
152 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
82 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
56 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
180 views
What is a Mega Backdoor Roth IRA?
The so-called "Mega Backdoor Roth IRA" was coined in the following article in 2014:
I donāt hear about new ideas very often, but here is one that a few people might find very useful. I call it the ā...
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
214 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
82 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
134 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
75 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
640 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
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3answers
131 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
65 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
135 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
544 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 ...
