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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32
votes
4answers
3k views

Started new job. Rollover previous employer 401k to new 401k, IRA or Roth IRA?

I recently started a new job and have a 401k from my previous employer that I don't know what to do with. Should I roll it into my new employer's 401k, a traditional IRA or a Roth IRA?
63
votes
3answers
11k views

Saving for retirement: How much is enough?

How to save I'm in my late twenties and am trying to get started off on the right foot saving for retirement. I have learned that retirement savings should usually be placed in retirement accounts in ...
4
votes
1answer
363 views

Tax on money withdrawn from Roth 401(k) and Roth IRA when living outside the United States and over 59.5-year-old

I am over 59.5 year-old and live in the United States. I contributed to Roth 401(k) as well as Roth IRA. Money withdrawn from Roth 401(k) or Roth IRA is not taxed in the United States as I am over 59....
12
votes
2answers
2k views

Penalty to withdraw from a new Roth IRA for first time home buyers?

My wife & I are 28 and plan on purchasing our first home in the next 1-3 years. Right now our assets are in two places: 403-b that I will not touch for the next 30+ years FDIC-insured savings ...
30
votes
1answer
962 views

What are the differences between a “traditional” IRA and a Roth IRA?

I hear that a traditional IRA offers a tax deduction whereas a Roth IRA doesn't, but there's got to be more to it than that: What makes a Roth IRA any good, if it doesn't provide a tax deduction? ...
23
votes
7answers
2k views

401(k) Contribution When Employer Has No Match?

Long time lurker, first time asker here. I've seen some similar questions to mine here, but nothing exactly in the same circumstance. I've seen almost near-consensus that the ordering for investing ...
14
votes
1answer
4k views

Can I withdraw Roth 401k contributions penalty-free before age 59.5?

I know that with a Roth IRA, contributions can be withdrawn penalty-free at any time. If I rollover a Roth 401k into a Roth IRA, can I do the same with the contributions made to the Roth 401k? I've ...
11
votes
3answers
3k views

Who keeps track of my contributions to my Roth IRA?

Since withdrawals up to the amount you contributed in a Roth IRA are tax and penalty free, who keeps track of that amount? I've transferred my Roth IRA from one broker to another so the new broker ...
8
votes
1answer
452 views

Convert Traditional IRA to Roth IRA when income limits are not satisfied by Roth IRA?

Our household MAGI (Modified Adjusted Gross Income) does not allow us to contribute the full amount to a Roth IRA for 2010. In that case is converting some part of Traditional IRA to Roth to complete ...
8
votes
2answers
3k views

Can Roth IRA first time home buyer withdrawals be made up?

If we were to withdraw the annual contributions from our Roth IRAs for the closing costs on a house (we have a 20% down payment, but only recently learned that that's almost $10,000 less than what you ...
14
votes
3answers
3k views

Treat HSA as an IRA?

As I understand it, any funds remaining in a Health Savings Account can be withdrawn for any purpose at age 59 1/2 (subject to ordinary income tax), making an HSA essentially behave like an IRA. Is ...
12
votes
2answers
2k views

Roth IRA: Vanguard vs Free Advisor's Mutual Fund

Background: I recently turned 25 and became applicable to invest into my employer's 401K. Due to no matching, I have 3% allocated in as a supplemental retirement fund. Currently single, rent (no ...
8
votes
3answers
565 views

How safe will Roth IRAs/401(k)s be going forward re: US's deteriorating fiscal position?

I've on and off wondered how "safe" Roth accounts are and things like this anti-Roth screed in the LATimes and this blog post at the Atlantic talking about the sad fiscal shape of the US has me ...
8
votes
3answers
460 views

Should I keep my emergency fund in a Roth IRA

I have been thinking about putting my emergency fund into a Roth IRA (in an FDIC insured High Yield Savings Account, so liquidity isn't an issue). My reasoning is as follows: I can always withdraw my ...
5
votes
4answers
1k views

Senior in College, need advice on my investing plan

I am a rising senior in college and saved up $3,000 dollars from my summer internship. I have done a lot of research online about investment options for my age and I decided that opening a Roth IRA ...
5
votes
1answer
258 views

Any advantage to non-deductible Traditional IRA contibutions?

The typical comparison between Traditional and Roth IRAs goes roughly as follows: A traditional IRA allows you to invest pre-tax money into the account and it grows tax free. Once you withdraw the ...
3
votes
2answers
715 views

Can one roll over an after-tax 401(k) to a Roth IRA, then any time in the future withdraw my contributions tax-free and penalty-free?

Can one roll over an after-tax 401(k) to a Roth IRA, then any time in the future withdraw one's contributions (that were initially made to the after-tax 401(k)) tax-free and penalty-free? Background ...
8
votes
1answer
3k views

First time home buyer: Can you withdraw funds from a Roth 401k for a first time home purchase?

I have a Roth 401k. Soon I will have enough debts paid off that I would like to start building up a down payment for a house. The house purchase will be my first, and will be over a year from now. (...
7
votes
2answers
872 views

What are the disadvantages of a backdoor versus conventional Roth IRA contribution?

My income is close to the Roth IRA limit. I like to do my IRA contributions early in the year, before I know exactly how much I will make due to bonuses and such. So I am thinking about doing a ...
7
votes
4answers
690 views

Advice on where to put money once I've hit the income limits on Roth IRA?

For the past few years I have been contributing to my company-sponsored 401k just enough to get all of their match, and contributing up-to-the-limit in a Roth IRA. I've now reached the income limits ...
5
votes
2answers
2k views

Use Roth IRA to pay portion of federal student loans?

I'm a graduating medical student, and have ~$220,000 in student loans. The majority of this (~$180,000) is in federal student loans at 6.8%, with the rest being at a lower rate (4-5%). I also have ~$...
5
votes
2answers
692 views

Can you use external money to pay trading commissions in tax-free and tax-deferred accounts?

I contribute the max to my Roth IRA every year ($5500 in 2013, for example). However, let's say I use that money to buy two stocks, with a commission $10 each, so I am effectively only contributing $...
4
votes
2answers
384 views

How should I deal with over-contributing to a Roth IRA?

While doing my taxes, I came to the realization that my income for 2015 is above the limit to contribute the full $5500 to my Roth IRA, but below the limit where I am unable to contribute. My ...
4
votes
1answer
155 views

403(b) and ROTH IRA contribution and rollover

My current employee offers a 403(b) with a Roth option. I also have a Roth IRA. The Roth IRA has a lower annual contribution limit than the 403(b). I have some questions regarding contributions. ...
2
votes
4answers
656 views

Is a Roth IRA preferable to a Traditional IRA?

With a traditional IRA, you are taxed on the complete balance of your account when you cash out after retirement correct? This would mean you are taxed on contributions + interest earned. With a ...
1
vote
1answer
882 views

What does Line 22 Basis in Roth IRA contributions mean in Form 8606?

What does Line 22 Basis in Roth IRA contributions mean in Form 8606? If I an correct, in traditional IRA, the basis, as in 8606, is the portion of the balance due to nondeductible contribution. Is ...
-1
votes
2answers
301 views

Emptying a Roth IRA account

If I withdraw money from my single Roth IRA account to make it empty, will the account be closed? Is there any expense to open a new Roth IRA account? If my purpose of emptying my Roth IRA account is ...
21
votes
1answer
3k views

How to invest after 401k and Roth IRA are maxed?

I'm in my 20's. I'm a big saver and I think I've covered the basics, including: Paying off all high interest (>3%) debt. Getting the full company match out of my 401k. Maxing out my Roth IRA for the ...
11
votes
1answer
7k views

Should I use a Roth 401K rather than 529 to save for children's college?

I have set up a 529 for my child's college fund but the more I look at it the less useful it seems compared to alternatives. The 529 is quite restricted -- What if she doesn't go to college? What if ...
10
votes
5answers
19k views

What is the difference between a Rollover IRA and a Roth IRA?

Previous Question. I have decided to roll my 401(k) into a Roth IRA. I use ThinkOrSwim as my broker currently, so I plan on opening an IRA with them. When opening the account I'm presented with the ...
3
votes
3answers
278 views

Is investing in an ETF generally your best option after establishing a Roth IRA?

It seems that many people recommend investing in an ETF when you just start out with a Roth IRA at a very early age. I was wondering why this is so, and if there are some better or complimentary ...
14
votes
3answers
8k views

Should I open a Roth IRA or invest in the S&P 500?

I am a 24 year old high school teacher. Currently, I don't have that much capital to open two accounts. I would rather focus on one at a time until I gain more capital. Should I start with a Roth IRA ...
14
votes
2answers
607 views

Pros, cons, & differences in investing in 401k vs. IRA?

What are some of the pros, cons, and differences of investing in a 401k vs. investing in an IRA (either Roth IRA or regular)?
5
votes
1answer
7k views

Do 401K contributions reduce MAGI as it pertains to Roth IRA income limits?

My wife and I are looking to make around 200K this year, putting us past the Roth IRA income limit. It may be possible for us to get under that limit if we both ratchet up our 401K contributions from ...
3
votes
2answers
2k views

Are distributions from Roth 401k or Roth IRA accounts taxed in India?

I am wondering if India distinguishes between pre-tax and roth IRA/401k accounts. So, if I am contributing to a roth account (401k and/or IRA) - would I have to pay taxes in India again: On the ...
2
votes
1answer
162 views

Excess Roth IRA contributions and taxes

My wife and I contributed the maximum for our age ($11,000 combined) to a Roth IRA for the 2015 tax year. It turns out we unexpectedly made too much money to be eligible at all. I shouldn't have ...
14
votes
3answers
753 views

Should I “hedge” my IRA portfolio with a life cycle / target date mutual fund?

I'm fully contributing to my Roth IRA every year into a brokerage account that is 100% in mutual funds. I've done basic mutual fund research and picked about 5 different funds that match what would ...
13
votes
2answers
1k views

Do Roth IRA contribution limits apply to Rollover IRAs?

My wife has already maxed out a Roth IRA for 2010. She just quit her job, and has a 401k from her former employer. Would I be able to roll it into a new Roth IRA even though she has already ...
12
votes
4answers
1k views

Reached the AGI for Roth IRA - now what?

For the past seven years, I've been contributing to my Roth IRA the max yearly amount. However, this year, my AGI will be above the maximum allowed amount. Couple questions... 1) Am I able to ...
9
votes
1answer
2k views

Rolling over a mixed 401k (Traditional and Roth) to a Roth IRA

I am rolling over my old 401k to a new Roth IRA. My 401k contained my pre-tax contributions, post-tax contributions, employer match, and employer profit sharing. I am guessing my employer match and ...
9
votes
2answers
1k views

Does it make sense to take a lower salary so I can still contribute to a Roth IRA?

Would it ever make sense to take a lower salary in order to contribute fully to a Roth IRA? This is probably very circumstantial, so let's assume: I'm not in debt and have no other obligations (...
8
votes
4answers
933 views

Looking to buy a house in 1-2 years. Does starting a Roth IRA now make sense?

My wife & I are 28 years old and are looking to purchase our first home in the next 1-3 years. Our financial situation looks something like this: 24% combined gross annual income in low interest ...
8
votes
7answers
1k views

Why would I ever invest in a traditional IRA over a Roth IRA

I've read many articles in the past about the differences between Roth IRAs and Traditional IRAs and no matter how I read it, it always seems like the author leaves some detail out that makes the ...
8
votes
3answers
29k views

If I have a Simple IRA can I also contribute to a Traditional IRA and/or Roth IRA?

I have a Traditional IRA and a Roth IRA. This year my company introduced a Simple IRA. As long the contributions to the Traditional+Roth are below the yearly limit, can I contribute to all three ...
6
votes
1answer
2k views

How can I make a Roth IRA contribution AFTER filing taxes for 2010?

I just e-filed my 2010 taxes and have received a direct deposit of my refund already. I just realized I'd like to make a contribution to my Roth IRA (and my wife's) for 2010. How can I do this? Do ...
6
votes
1answer
609 views

What is the maximum amount that can be held in a traditional or Roth IRA?

What is the maximum amount of money that one can have saved in an IRA? I'm not referring to contributions, but the total amount before withdrawing any money.
6
votes
7answers
2k views

Does a Roth IRA offer any explicit benefits over a Traditional IRA?

Using round numbers, let's assume I have $5,000 (pre-tax) to invest annually in an account that earns 10% per year. In a Roth IRA scenario, this $5,000 would be reduced to $3,750 if we assume a (nice ...
6
votes
2answers
1k views

Are 401(k) contribution limits for employee & employer separate? What about hitting the limit?

I am 29 years old and have a 401(k) already with my company. I just started contributing 10% to my 401(k), up from my 8%. My company does not match but they do put 10% of my salary into my 401(k) as ...
5
votes
1answer
8k views

Can I do a Roth 401k rollover to Roth IRA and withdraw contributions I've made this year?

I am leaving my current job. Can I do a rollover from my existing Roth 401k, to a Roth IRA, and then withdraw my contributions and vested employer contributions from this year and stick them into a ...
5
votes
1answer
360 views

Qualifying income for Roth IRA for a child?

I'm thinking about my still-toddler boy, and trying to figure out how to help him get an income which would allow him to start contributing to a Roth IRA. I am aware that the value of such an IRA ...