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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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 ...
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4
votes
1
answer
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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 ...
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votes
2
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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 ...
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4
votes
1
answer
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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 ...
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3
votes
1
answer
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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)
...
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3
votes
2
answers
128
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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 ...
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4
votes
2
answers
275
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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 ...
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votes
1
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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. ...
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4
votes
2
answers
192
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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 ...
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5
votes
4
answers
772
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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 ...
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2
votes
2
answers
159
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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
1
answer
106
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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 ...
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3
votes
1
answer
910
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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
1
answer
279
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What is a Mega Backdoor Roth IRA?
The so-called "Mega Backdoor Roth IRA" was coined in the following article in 2014:
I don’t hear about new ideas very often, but here is one that a few people might find very useful. I call it the “...
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3
votes
1
answer
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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 ...
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4
votes
2
answers
428
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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 ...
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2
votes
2
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207
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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 ...
user84014
6
votes
1
answer
442
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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 ...
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vote
2
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147
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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 ...
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1
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183
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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 ...
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votes
3
answers
666
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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 ...
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votes
1
answer
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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?
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3
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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
0
answers
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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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0
votes
1
answer
71
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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....
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votes
1
answer
211
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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 ...
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4
votes
1
answer
604
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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 ...
0
votes
1
answer
68
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Method of Earning Calculation For Early Roth IRA Withdrawal
I have a question on how the IRS would calculate earnings on an early Roth IRA withdrawal.
Assume Taxpayer is under 59 and doesn't meet any specific exceptions to cash out early.
Taxpayer ...
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5
votes
2
answers
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Why do 401k up to company match, then fill Roth IRA, then finish filling 401k?
Places like NerdWallet and the FI/RE community on Reddit suggest contributing to a 401k up to the company match (if one is offered), then maxing out a Roth IRA, and then going back and continuing to ...
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1
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What is a roll-over to a Roth account?
I don't qualify for contributing directly to Roth accounts. I keep hearing about roll-overs but I don't understand how roll-overs interact with my current accounts.
Do I pay taxes on my money (or ...
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votes
2
answers
137
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Can I contribute to my IRA from 2018 still?
I put in my tax filing for 2018 that I had contributed $5500 to a Roth IRA, but due to technical difficulties with my investment account I didn't get around to funding it until now, but it looks like ...
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1
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Can an IRA contribution be made on the same date of the tax deadline and still count for that tax submission?
The deadline for taxes and IRA contributions for FY2018 in USA is April 15, 2019. If I haven't made a contribution yet for FY2018, can I go to a bank on Monday, April 15, 2019 and make a contribution ...
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votes
2
answers
93
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Roth counting toward 401k maximum
Vanguard is showing me that my Roth contributions are counting toward the $19,000 401k maximum. I thought Roth counted towards a separate $6000 maximum.
Is my Roth not an IRA?
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votes
0
answers
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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 ...
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3
votes
0
answers
127
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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 ...
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1
vote
2
answers
170
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Broker Didn't Invest the Roth Contribution in the Tax Year They Said They Did - Now We are Behind. What can we do?
The short story is:
In the spring of 2016, we gave our broker a check to max out our Roth IRA contributions for the tax year of 2015 (check was written and cashed by the broker before April 15 in ...
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vote
1
answer
54
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Selling ETFs in Roth IRA fund, in exchange to buy Bonds tax implications
I would like to sell ETFs in my Roth IRA fund, in exchange to buy Bonds.
What are the tax implications of this?
Even if the money is still held in the Roth IRA fund, would I get taxed?
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2
answers
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Taxes on Dividends in a Roth IRA
Do I have to pay taxes on dividends that I receive from stocks in my Roth IRA? I'm aware that I won't pay taxes on my money if I take it out after age 59.5 or if I take out less than or equal to the ...
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1
vote
1
answer
397
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Do scholarships and PhD stipends count as taxable compensation for Roth IRA limits?
The maximum amount you are allowed to contribute to a Roth IRA in a given year is either a certain dollar amount or your “taxable compensation”, whichever is lower. Now I am a PhD student who gets ...
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vote
1
answer
283
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I accidentally recharacterized nondeductible IRA contribution to Roth
In 2018, I made a catch-up contribution($1000, nondeductible) to traditional IRA). Then by mistake, instead of Roth conversion, I accidentally requested "recharacterization to Roth" which I didn't ...
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vote
1
answer
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Will Receive K-1 from Trust: Roth IRA
I apologize if this question is not warrant asking. Though I was wondering if taxable income earned by the trust distributed on the K-1 form would qualify me as the trustee to contribute to a Roth IRA....
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1
answer
241
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How to properly compare pension vs Roth IRA?
I am trying to compare the benefits of a federal pensions system FERS vs simply investing the money myself with a Roth IRA. I'm assuming that I work in a federal job for several years, but retire ...
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Why is it a good idea to invest only in a Roth IRA or a no-load mutual fund invested in an indexed fund of the Dow or S&P 500?
Basing this question on this answer from a popular Quora writer:
This is just a matter of simple math.
Saving accounts earn less than 1% per year.
CDs usually pay less than 2.75% per year....
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vote
0
answers
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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 ...
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2
answers
160
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Roth 403b vs Roth IRA [duplicate]
Currently my employer offers a Roth 403b plan that I have been contributing to. I wanted to know if it makes more sense for me to contribute to the Roth IRA first rather then the Roth 403b? I ...
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2
answers
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Death benefit into IRA or cash for mortgage
I am the beneficiary of what was left in my mom's state pension fund. I don't know how much it is, but the state estimates most people run through their pension funds (when they chose that option) in ...
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vote
2
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What are the limits for 401k and Roth IRA contributions and if I can catch up for the years missed?
I know the basic difference between a 401k and a Roth IRA that one is pre-tax and another is post-tax. I've also learned that I can contribute towards both a 401k and Roth IRA. I would like to know if ...
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votes
2
answers
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I'm over the MAGI limit for 2018 for the Roth IRA I already contributed to. Now what?
At the beginning of last year, I contributed the maximum amount to my Roth IRA, as I typically do. Late in the year, I received a very unexpected and very large bonus. I realized when I got my 1040 ...
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0
votes
2
answers
453
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Limit on Maximum amount to open a Roth IRA
Is there a limit on what is the maximum amount that I can use to start a Roth IRA? What I mean is if I have $100,000 (taxed), can I open a Roth IRA with this amount and then continue with the annual ...
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vote
1
answer
250
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Roth IRA Nondeductible basis
I've been using TurboTax to file my taxes for the past decade or so. Since 2015, for income reasons, I have been making after tax (nondeductible) contributions to a Traditional IRA, and then ...
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