Questions tagged [roth-ira]
To be used for questions related to Retirement Tax saving scheme Roth IRA as applicable in the United States
722
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Within a single year, when is the optimal time to contribute to an IRA?
Should I be making my maximum allowable IRA contributions as early as possible in the year (for instance, Jan 1st 2023 for the 2023 contribution), or as late as possible in the year (for instance, ...
2
votes
1
answer
177
views
Can I roll over my Roth IRA into 401(k), and should I?
I have an Roth IRA through Wealthfront that I opened several years ago. I also have a company 401(k) through Fidelity NetBenefits.
Since the Roth IRA is a personal account (no employer match, no ...
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3
votes
1
answer
78
views
Contribute to Roth IRA for year 2021 without ITIN or SSN. (ITIN applied)
Context: I came to the USA via F2 (student visa) in September 2021 after getting married. My husband’s status is resident alien and he has an SSN. Additionally, he was on an F1 visa for the entire ...
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1
vote
1
answer
70
views
Is there any reason I should not be able to recharacterize Excess Roth IRA contributions to avoid the 6% tax hit?
I contributed 6k to a roth IRA early last year for 2021. I later got married and am now over the income threshold entirely.
I'm under the impression that the best option to avoid losses is to ...
0
votes
1
answer
41
views
Doing a Roth IRA transfer this year for last year
I did a simple backdoor Roth IRA for the year 2021 just now i.e. in Feb. 2022. Thus I have not gotten any 1099-R forms for 2021. So do I file this in my 2022 tax return next year? Or can I still file ...
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5
votes
3
answers
398
views
Do I owe any taxes and do I need to report ROTH IRA distribution that was less then the contribution?
If I contributed let's say $4000 of after-tax money to my ROTH IRA early in 2021 and withdrew $3000 later in the year, am I correct in thinking this is not taxable income and I don't need to report it ...
- 217
2
votes
1
answer
91
views
What methods are available to find out how much I've contributed to a Roth IRA?
Problem
I have a Roth IRA that I setup as a teenager. I contributed in my teens and early 20s, then focused on my 401k and personal accounts; I picked back up investing in the Roth IRA my late 30s.
...
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2
votes
1
answer
46
views
Does Net Income Attributable during a Roth IRA recharacterization count toward the IRA contribution limit?
At some point during 2021, my income ended up exceeding the limit to directly contribute to a Roth IRA, which was unexpected. At that time, I had already contributed an amount below the limit (let's ...
- 419
1
vote
2
answers
101
views
When a stock held in an IRA takes a downturn, is that a good time to move that asset to a Roth IRA?
I have some traditional IRA funds invested in QuantumScape, and it's down quite a bit since the initial purchase. I want to continue to have some holdings in the company. Would this be a good time to ...
1
vote
2
answers
197
views
How to choose between Roth IRA and Traditional IRA
I have been contributing to Roth IRA for several years now. At this point my income have jumped up so I cannot contribute to Roth IRA anymore, unless I use the backdoor. Currently, my tax rate is 24%. ...
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4
votes
2
answers
1k
views
Roth vs. investing a taxable account [duplicate]
What is the benefit of Roth IRA in comparison to putting the money in a taxable account (stocks or MFs)?
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3
votes
2
answers
157
views
What year AGI applies to Roth IRA contribution limits?
I would like to make my Roth contribution for 2022 as early in the year as possible. There are contribution limits based on Adjusted Gross Income. None of the sources I've read made it clear if it's ...
- 315
0
votes
1
answer
62
views
How should I schedule pulling money from investments for home purchasing?
I'm getting married this year, after some delays for reasons you can probably guess. Afterwards -- so in six months or so -- we are hoping to buy a home. Of my money, roughly a third of it is in cash ...
- 101
2
votes
1
answer
79
views
I'm working for parents for money for Roth IRA. What docs might be needed to support it as earned income?
I'm 58 years old, and living at home with my parents. I do some things to help them out, but they are being a bit generous to let me stay in an addition that my grandmother built on to their house. ...
- 123
2
votes
1
answer
182
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Re-characterization of Roth IRA to Traditional IRA Form 8606
I just successfully completed my re-characterization of Roth IRA to traditional IRA. I contributed $6000 to Roth IRA. The re-characterization took those $6000 + gains and put them in Traditional IRA.
...
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3
votes
2
answers
452
views
ROTH IRA Contribution (Income Too High) How will I know about penalty?
I am currently looking into 2021 Tax and arranging all the documents. I contributed $6000 (myself) and $6000 (spouse) for Roth IRA contributions. Now I am calculating my income for 2021 Tax and it ...
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1
vote
0
answers
72
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IRAs for US citizens who are non-US residents [closed]
I am a US citizen residing in the UK (for the long term). I understand that I can legally invest in a Roth IRA; however, it seems very difficult to actually open one that will allow me to do so with a ...
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3
votes
2
answers
367
views
can I retroactively make a Roth contribution based on an amended 2020 return?
In 2020, wife and I filed separately. She was unable to make an IRA contribution (a deductible one, at least) due to being highly-paid and covered by a retirement program at work, and I was unable, ...
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3
votes
1
answer
168
views
What can be withdrawn from a Roth IRA without penalty before 59 1/2?
I know that contributions (dollar amount equal to what was directly contributed to the Roth IRA) can be withdrawn tax-free and penalty-free at any time, and that earnings on those contributions will ...
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1
answer
165
views
Do employers typically match the contributions you put in proportionally?
My employer goes through Transamerica for our retirement accounts, and it allows us to split up our contributions between a 401k and a Roth account. Since there is a limit to the Roth contributions ...
- 145
0
votes
2
answers
173
views
Best Option to Fix Roth IRA Excess Contribution For 2021
I have maxed out my Roth IRA contribution this year (2021) not knowing there was a limit due to my income. To put it simply, I only qualify for $5k and I put in $6K. The IRA has now grown to about $8k ...
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5
votes
1
answer
258
views
"High Income Earner" savings / investment options
After 7 years in my profession, I'm finally in a high paying position. I was reminded recently that I needed to be "accumulating wealth", which got me to reading articles. One of the things ...
- 173
1
vote
1
answer
96
views
Can I withdraw my contributions from a Roth IRA early without penalty even if they were rolled over from a Roth401k?
I understand that both Roth 401k and Roth IRA accounts allow withdrawing contributions prior to age 59/12 without penalties.
But today I heard someone say that I should NOT roll over my Roth 401k to a ...
- 53k
1
vote
1
answer
61
views
When 401K gets rolled over to a rollover IRA OR Traditional IRA gets rolled over to Roth IRA, do the stock units get preserved?
Consider a traditional 401K getting rolled over to a rollover IRA. When such a rollover happens, do the stocks and mutual funds get sold and the total sum gets transferred as cash into the new account ...
- 159
4
votes
1
answer
133
views
Is it possible to to rollover 401K into an IRA account multiple times with different employers?
Say I am employed with company 'A' with whom I have a 401K account. Now, while switching jobs, I decide not to carry forward this 401K to the next employer but instead rollover this 401K I had with ...
- 159
3
votes
2
answers
533
views
What Income is the Roth IRA Income Limit Based On
Background: Last year I was making well under the Roth IRA income limit, but after some raises and bonuses this year, I'm starting to toe the line with the income limit.
I've done some research and ...
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3
votes
1
answer
206
views
I contributed to my and my spouse's Roth IRA when she was unemployed. Now she has a job and we will exceed the income limit. What to do?
Back in January 2021, my spouse was unemployed and our joint income for 2021 was (expected to be) less than $198,000. Thanks to that, I contributed $6,000 to my own Roth IRA and
$6,000 to the Spousal ...
- 133
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?
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5
votes
7
answers
3k
views
What can we do when we are stuck in a conservative 401(k)?
Right now, I am working as a software contractor and my agency allows 401(k), but only in conservative investments, such as Vanguard Target Retirement 2030, 2035, or S&P 500 index fund, or at most ...
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2
votes
1
answer
73
views
Recharacterized 2 years of Roth IRA Contributions - how much to invest through Backdoor?
I have mistakenly been contributing to a Roth IRA for 2020 and 2021 while my adjusted gross income (AGI) exceeded the 120k limit.
Therefore, I called Vanguard to recharacterize my contributions to my ...
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8
votes
4
answers
834
views
Can I open a Roth IRA AND get to choose what companies my money is getting invested into?
In my experience with investing in IRAs, it seems like you just tell the people that you want to retire in (insert number of years), tell them how risky you're willing to be with your money and then ...
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1
vote
2
answers
181
views
Automated/Least Painful Backdoor Roth IRA + Nuanced Questions
As quick background, I'm an expat that has been living abroad for the past 8+ years, and have been and continue to be ineligible to contribute to an old Roth 401k that I still possess with my previous ...
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2
votes
2
answers
244
views
Can I pay my baby an income to max out a custodial Roth IRA without paying/filing taxes for him?
I made a huge income jump from a career move right after having a baby. I do not want to do any lifestyle creeping and would rather put this money to work with compound interest. I'll already be ...
1
vote
2
answers
234
views
Can I contribute to my Roth IRA in December and then again in January?
I haven't started my Roth IRA yet, have been procrastinating.
So hypothetical question, say I get around to doing it in December, can I make the maximum contribution all at once in that month, and ...
- 129
9
votes
5
answers
6k
views
Company with high match for 401K vs IRA, which to choose?
I am fortunate to be at a company with a pretty high 401K match, 50% with no cap.
Normally when I've saved in the past, I've done the 401K up to the amount matched, and then chose other savings ...
- 201
0
votes
1
answer
76
views
A Complicated Question regarding Roth IRA and backdoor
So here is the scenario.
I have 600K in 401K Rollover Traditional IRA (Pre-Tax)
I have 30K in Roth IRA
I want to contribute to Roth IRA but my income is too high. If I take part of money every year ($...
- 769
0
votes
1
answer
286
views
Can rolling over a Defined Contribution Plan to a Roth IRA make investment earnings tax-free while avoiding Roth contribution limits?
My employer offers a Defined Contribution Plan (DCP) where I can contribute after-tax earnings. Investment earnings grow tax-deferred. There is an option to roll over DCP (after-tax) contributions to ...
- 103
0
votes
1
answer
145
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Converting Portion of 401K Rollover Traditional IRA to Roth IRA
I have a 401K (Pre Tax) plan rollover to a personal Traditional IRA. I also have a Roth IRA account. Currently, I do not contribute to the 401K plan, since it was from a previous employer. I do ...
- 769
1
vote
2
answers
169
views
Best Time for Back Door Roth IRA Contributions
I want to contribute to Roth IRA but due to income limits I cannot. I am already have a Traditional IRA account with funds in it. I can move certain amount to ROTH IRA as a backdoor contribution. My ...
- 769
0
votes
1
answer
40
views
Can you fund your Traditional IRA after rolling it over to Roth IRA?
The Traditional IRA has a $6,000 limit per year. If I
Step1: Transfer 6k to Traditional IRA
Step2: Roll over entire 6k to Roth IRA
Can I transfer additional 6k to Traditional IRA because Traditional ...
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vote
1
answer
1k
views
Roth IRA and pre-IPO shares
With the recent news that a billionaire managed to get several billion dollars in a Roth IRA by funding it from pre-IPO shares of his company, I'm curious about how this works. Ignore for the moment ...
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votes
1
answer
57
views
Does the amount converted over from traditional to roth-ira count towards the contribution limits for that year?
IRS has contribution limit of $6000 ($7000 for 50+ individuals) for any given year for contribution to IRA account. Say in a given year, a person decides to convert $3000 from his/her traditional IRA ...
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-1
votes
1
answer
128
views
How much of my 401(k) should I roll over to a Roth IRA to pay the least taxes?
I am 61 yrs old want and I want to start rolling over my 401K to a Roth-IRA account. How can I figure out how much money I should roll over in order to pay the least taxes? Through a google search, I ...
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0
votes
1
answer
36
views
Is partial amount allowed to be converted/rolled over from traditional to roth-IRA?
Say a person has $50,000 in his/her traditional IRA account. Now due to
Now he wants to transfer part of it say $10,000 into a roth-IRA account. Is such a partial roll over to roth-IRA possible?
Also ...
- 159
0
votes
1
answer
45
views
Will a traditional IRA account's capital gains incur annual taxes, if a person's income is above the limit for tax deductible IRA contributions?
Say a person's income is above the limit of making a tax deductible contribution to a traditional IRA account. If he/she still decides to make a contribution of say $6000 per year to a traditional IRA ...
- 159
0
votes
1
answer
67
views
Are there any penalties or tax consequences if an person decides to take money out of a Roth IRA account prematurely?
Say a person has a Roth IRA account. Now the money in the Roth IRA account is already post-tax contributions. However, say the person has made a significant capital gains on their Roth IRA investments....
- 159
2
votes
2
answers
95
views
Are there annual salary limits to be eligible to contribute to a ROTH IRA account in US?
I am planning to contribute to a ROTH IRA to have a better control on my tax free trading. However I need to know as a single person, if there are certain salary limits to be eligible to make ...
- 159
1
vote
1
answer
66
views
Contributing to Roth IRA using previous tax year earnings
I am currently a student and I maxed out my Roth IRA contribution for 2020, but I still have “left-over” income saved. Given that I have not yet earned any taxable income for 2021, can I use these ...
1
vote
2
answers
125
views
What tax forms have to filed when doing a rollover from After-tax 401(k) to Roth IRA?
What tax forms have to filed when doing a rollover from After-tax 401(k) to Roth IRA? Examples appreciated.
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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
...
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