Skip to main content

Questions tagged [roth-ira]

To be used for questions related to Retirement Tax saving scheme Roth IRA as applicable in the United States

Filter by
Sorted by
Tagged with
3 votes
1 answer
520 views

Late IRA contribution

My wife and I filed jointly for the first time and were planning to contribute that maximum for our Roth IRA’s for tax year 2023. However, the deadline has passed. Is there any possible way to still ...
Alex C's user avatar
  • 31
0 votes
1 answer
116 views

Did Congress ever ban Peter Thiel's IRA maneuver?

Back in 2021 there was a big kerfuffle when it became known that Peter Thiel had put a bunch of his PayPal stock in a Roth IRA, essentially avoiding needing to pay capital gains tax on about $5 ...
Stephen's user avatar
  • 871
3 votes
1 answer
382 views

Late IRA contribution with changing filing status and income limits

My wife and I got married in February. She has a Roth IRA, but she did not hit the contribution limits for 2023. I am considering making a late contribution to make sure we are taking full advantage ...
0x5453's user avatar
  • 135
0 votes
1 answer
118 views

How *exactly* do I complete an indirect Roth transfer?

There are tons of results when you Google "how to do a Roth indirect transfer". But each article is 95% the same and doesn't provide enough details on tax reporting. Or they only provide tax ...
Nosjack's user avatar
  • 8,747
2 votes
1 answer
134 views

Roth IRA Investing

I’m new to investing and I currently have my IRA contributions put into 3 equities and 1 ETF. Beginner question, how do future investments work? How do I keep adding to my ETF over the years? Do I ...
Brad LaFontaine's user avatar
6 votes
2 answers
1k views

What is the Roth IRA limit for someone with a low income?

Say, someone over 18, a college student, earn a total of $5000 (W2 Wages, tips, other compensation) from a summer job. And pay: $500 social security / medicare tax $800 federal income tax $200 state ...
Aelian's user avatar
  • 165
0 votes
1 answer
110 views

Can I withdraw money from my Roth IRA to pay last year's tuition?

I just learned I can withdraw money from my Roth IRA to pay tuition fees for a graduate degree without the 10% penalty. Can this be done retroactively at all? Specifically, can I sell enough right now ...
Danny's user avatar
  • 103
1 vote
0 answers
58 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 ...
Jay's user avatar
  • 111
0 votes
1 answer
305 views

Rollover former employe's 401k after backdoor Roth IRA conversion?

I am no longer at my former employer but I have an existing 401k plan with Vanguard through them. 30% of the contributions were pre-tax. (traditional 401k) 70% of the contributions were post-tax. (...
Raj's user avatar
  • 693
4 votes
2 answers
3k views

Move money from former employer's 401k to Roth IRA and Rollover IRA

I am no longer at my former employer but I have an existing 401k plan with Vanguard through them. 30% of the contributions were pre-tax. (traditional 401k) 70% of the contributions were post-tax. (...
Raj's user avatar
  • 693
0 votes
1 answer
179 views

Backdoor Roth IRA and "total basis in traditional IRA for 2022 and earlier years"

Like many of you, I am currently preparing my taxes for 2023. I have a question about Backdoor IRA and a particular line in my 2022 Tax Return. Each year, I have contributed to a Traditional IRA and ...
thoma's user avatar
  • 101
1 vote
1 answer
280 views

Why do people like Mega Backdoor Roth IRAs?

So, according to me: Traditional IRA: Money goes in tax-free Grows tax-free Taxed as ordinary income in retirement Roth IRA: Money goes in after-tax Grows tax-free Tax-free in retirement (These ...
Raj's user avatar
  • 693
4 votes
3 answers
3k views

If I roll over one Roth IRA into another, can I withdraw the full rollover amount after five years?

Say I have $100,000 in a Roth IRA, composed of $60,000 in contributions and $40,000 in interest/earnings. If I roll over that full amount into a second Roth IRA, then wait five years, would I be ...
Wayfaring Stranger's user avatar
1 vote
1 answer
292 views

Rolling over Traditional 401(k) affected by Pro Rata

I currently have three retirement accounts: Account A: Traditional IRA with Pre-tax money Account B: Traditional IRA with Post-tax money (used for backdoor Roth IRA) Account C: Roth IRA Account D: ...
davyli's user avatar
  • 33
0 votes
1 answer
97 views

The Roth IRA clock and taxes

Please consider the following hypothetical situation: A 30 year old investor puts $500 into a Roth IRA. When he turns 36, he takes all the money out and pays taxes on his profits and maybe a penalty ...
Bob's user avatar
  • 1,673
0 votes
1 answer
81 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 ...
dbugg's user avatar
  • 1
1 vote
1 answer
166 views

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?
Jeffrey Enriquez's user avatar
2 votes
1 answer
257 views

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 ...
matt.dolfin's user avatar
1 vote
0 answers
56 views

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 ...
Justin Morrison's user avatar
0 votes
0 answers
150 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 ...
tmwn6919's user avatar
  • 107
0 votes
2 answers
2k views

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 ...
heretoinfinity's user avatar
2 votes
2 answers
517 views

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 ...
achyrd's user avatar
  • 123
1 vote
1 answer
115 views

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....
Bob's user avatar
  • 1,673
6 votes
1 answer
183 views

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, ...
User5910's user avatar
  • 203
1 vote
2 answers
135 views

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 ...
swiley's user avatar
  • 13
1 vote
3 answers
164 views

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 ...
GµårÐïåñ's user avatar
4 votes
2 answers
1k views

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 ...
skepticalforever's user avatar
1 vote
1 answer
79 views

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 ...
nbeyer's user avatar
  • 113
-1 votes
1 answer
165 views

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 ...
Stefanie Gauss's user avatar
1 vote
1 answer
125 views

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 ...
ewr3243's user avatar
  • 193
1 vote
1 answer
68 views

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 ...
NeutronStar's user avatar
  • 1,322
0 votes
0 answers
49 views

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 ...
Stefanie Gauss's user avatar
6 votes
2 answers
728 views

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/...
Rachid Brah's user avatar
3 votes
1 answer
171 views

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 ...
yoozer8's user avatar
  • 9,513
0 votes
0 answers
34 views

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 ...
public wireless's user avatar
5 votes
1 answer
1k views

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 ...
Brian's user avatar
  • 153
2 votes
2 answers
149 views

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 ...
Michele's user avatar
  • 35
5 votes
1 answer
433 views

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 ...
heretoinfinity's user avatar
17 votes
1 answer
5k views

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 ...
largecoconutballs06's user avatar
-1 votes
2 answers
324 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: ...
Stefanie Gauss's user avatar
2 votes
1 answer
106 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 ...
heretoinfinity's user avatar
2 votes
0 answers
221 views

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 ...
Matthew's user avatar
  • 3,150
2 votes
1 answer
199 views

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 ...
Stefanie Gauss's user avatar
4 votes
3 answers
2k views

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,...
dfrankow's user avatar
  • 637
2 votes
1 answer
151 views

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 ...
canary_in_the_data_mine's user avatar
1 vote
1 answer
666 views

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 ...
Richard Smith's user avatar
3 votes
3 answers
649 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 ...
javanoob's user avatar
  • 335
1 vote
1 answer
35 views

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 ...
javanoob's user avatar
  • 335
1 vote
1 answer
388 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....
javanoob's user avatar
  • 335
-1 votes
4 answers
134 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 ...
largecoconutballs06's user avatar

1
2 3 4 5
15