Questions tagged [roth-ira]
To be used for questions related to Retirement Tax saving scheme Roth IRA as applicable in the United States
33
questions with no upvoted or accepted answers
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Mega Backdoor Roth: Withdrawal consequences for in-plan vs out-of-plan conversion
My employer allows after-tax 401k contributions, and has an option for automatic quarterly after-tax 401k -> Roth 401k in-plan conversions. The other option for executing the mega backdoor Roth is to ...
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4
votes
0
answers
161
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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-...
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0
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Questions on retirement saving plans for non-resident aliens
I am a German citizen that started working as a postdoctoral researcher at a University in the U.S., being on a J1 visa.
Part of my benefits package includes an employer match that I can make use of ...
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3
votes
0
answers
122
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Withdrawing from after tax 401k rollovers to Roth IRA
I have after tax contribution. I have setup Roth in plan conversation. If I rollover that money to a Roth IRA, which I can do since it is after-tax money. Do I have to wait for 5 years to withdraw my ...
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3
votes
1
answer
244
views
Indian taxation on after-tax retirement accounts such as Roth
How does India tax US after-tax retirement accounts such as the Roth IRA for a person who is a US non-resident for tax purposes starting age 59.5?
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3
votes
0
answers
212
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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 ...
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3
votes
0
answers
130
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 ...
- 131
3
votes
0
answers
101
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How can I purchase new assets for my Roth IRA while residing in Canada?
I'm a US citizen and currently reside and study in Canada.
My Roth IRA is currently at Vanguard (in the US). While I reside in Canada, they do not allow me to purchase new assets with the funds that ...
- 220
2
votes
1
answer
240
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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
2
votes
0
answers
197
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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 ...
- 3,150
2
votes
0
answers
75
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 ...
- 121
2
votes
1
answer
105
views
Why will I be receiving a 1099-R in January of 2022, for income that is supposed to be reported for tax year 2020?
I overcontributed to my Roth IRA by $2,000 in 2020. I realized this when working on my 2020 taxes this year, so withdrew the excess contribution and respective earnings of $277.50. Now I received a ...
user19035
1
vote
0
answers
49
views
Roth IRA vs Individual Brokerage Approach
How does investment approach change between a Roth IRA vs. an individual brokerage account? If your individual account is focused on long term investments over several years, would it be reasonable to ...
- 111
1
vote
0
answers
51
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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
1
vote
0
answers
44
views
What are the rules regarding early withdrawal of contributions from a Roth IRA after a rollover from a solo Roth 401(k)?
Plan
Open a solo Roth 401(k) (I'm self-employed) and contribute roughly $50,000 during the first year
Wait some amount of time, if necessary?
Rollover the Roth 401(k) into my existing Roth IRA
...
- 11
1
vote
0
answers
89
views
401k or Roth IRA for non treaty countries
This might be a bit complicated, so pretty please bear with me a little.
I am currently living in USA on a E2 visa.
My employer offers both 401k and Roth IRA.
I do not plan to neither retire nor ...
- 111
1
vote
0
answers
65
views
Are you taxed on money withdrawn from a Roth IRA to pay for alimony?
A QDRO allows a non-penalized distribution from a Roth IRA due to a divorce but what if money is taken out and used for alimony that is not specified in the QDRO? Form 8606 Part III, Line 19 is where ...
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1
vote
0
answers
43
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Solo 401K with a Solo Roth 401K and MEGA Backdoor Roth
In 2020, I have worked as both a sole proprietor / individual contractor with no employees and as a W2 part-time employee. I am 41 yrs old (under 50) and will have multiple streams of income in 2020:
...
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1
vote
0
answers
48
views
From unemployed to self-employed/freelancer, how is my 401K & IRA setup?
Recently lost my job and decided to try out the freelancer route. I am in my early 40s and I expect to make about $150k before tax. I have a few questions about setting up a my 401k and IRA.
Already ...
1
vote
0
answers
58
views
ROTH IRA eligibility for US Citizens working abroad and claiming FEIE (foreign earned income exclusion)
I've been working overseas for the past few years for a US company and claiming FEIE. My annual salary is roughly 200k, which is over the income eligibility requirements for a ROTH IRA. As a work ...
- 11
1
vote
0
answers
56
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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 ...
1
vote
0
answers
424
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Is it worth contributing to a Canadian TFSA from the USA?
I am a Canadian citizen studying for a PhD in the USA.
From the CRA's point of view, I'm a Canadian resident; from the IRS's point of view, I'm a non-resident alien.
My investment goal is long-term ...
- 111
1
vote
0
answers
36
views
What are the tax implications of transfer fees while rolling over Roth IRA held in CD?
I have some money in a CD that's in a Roth IRA account. I'd like to transfer it out of that account and into another one, as part of a roll over. The CD is not at maturity, so I will need to pay a ...
- 111
1
vote
0
answers
93
views
Undo IRA conversion to an existing Roth IRA?
I have two retirement accounts at the same brokerage. One is a traditional IRA that was rolled over from a past company 401k plan, the second is a Roth IRA that I contribute to with taxable income.
I ...
- 111
0
votes
1
answer
65
views
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 ...
- 1
0
votes
0
answers
140
views
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
0
answers
31
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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 ...
- 594
0
votes
0
answers
400
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 $3,000 ...
0
votes
0
answers
37
views
American Roth IRA, moving abroad
If I set up a Roth IRA in America, can I take out money from it in the future if I'm living outside of the US?
- 1
0
votes
0
answers
62
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IRA to IRA Roth "Recharacterization" vs "Conversion", is there a difference in result?
Let's assume this simplified case:
At the beginning of 2020, there is no money in my IRA. I contribute the maximum amount allowed (for me 7k$, because I'm old) from after-tax money, and next day ...
- 37.7k
0
votes
0
answers
190
views
How to report returned Roth IRA contributions and earnings in H&R Block software
I'm using H&R Block software for my 2019 taxes. I am over 60 and was successfully able to withdraw my 2019 Roth IRA contributions. (My MAGI is too high.)
The tax software indicates I will need to ...
- 1
0
votes
0
answers
102
views
What are the pros and cons of having a higher taxable income during retirement?
I am listing the pros and cons of pre-tax 401(k)/IRA (a.k.a. traditional 401(k)/IRA) vs. Roth 401(k)/IRA, in addition to what I read on choose Roth 401(k), or traditional 401(k).
One of the ...
- 11.3k
-1
votes
1
answer
294
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Swing Trading Roth IRA & SEC's Reg T+2 amendment?
Few resources state that swing trading Roth IRA account would be difficult due to SEC's Reg T+3 which per SEC Website is now Reg T+2 effective Sept. 5, 2017.
Even prior to SEC's amendment, my ...
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