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1

Typically you'd file Form 8606 with your tax return to determine how much of your distribution is taxable. Specifically, Part III deals with distributions from Roth IRA's. However, the instructions indicate: Don’t include on line 19 any of the following. ..... Distributions that are incident to divorce. The transfer of part or all of your Roth IRA ...


2

The answer to this question depends on many variables, including stock and bond returns, your investment timeline, your tax rate, your future contributions, your withdrawal strategy, etc. So I'm using the following assumptions: stock return: 2% qualified dividends + 8% appreciation bond return: 3% non-qualified dividends + 0% appreciation investment ...


5

Since the S&P 500 ETF will probably have more gains, it would benefit more from being in the tax advantaged account. Personally I prefer to have all of my accounts balanced. But based on the parameters of your question, it would most likely be optimal to have the entire Roth IRA invested in S&P 500 ETF and the entire taxable brokerage account ...


4

I treat all accounts -- taxable, 401(k), Rollover IRA & Roth IRA -- targeted for a single purpose as a single unit. Thus, in your shoes, I would KISS and not divide each account in quarters. Specifically, the "... six months expenses is cash" would go in an online savings account, so your other accounts would have to be more heavily weighted towards ...


4

In addition to what yoozer8 wrote, you can't "put back" contributions (not gains, but contributions) that you withdrew. For example, if you contribute $6000 to a Roth every year, and need to withdraw $10000 for some purpose or another, the money is gone (from your IRA; you still have the $10000, but can't later1 reinvest it back in the Roth). Whereas if ...


12

The three key differences between a Roth IRA and taxable investment account are: Tax on gains Access to gains Eligibility to contribute With a Roth IRA, you don't pay any income or capital gains tax on the earnings in the account, but you can't touch the gains until you are at least 59 1/2 years old (if you do, you will pay taxes, in addition to a penalty)....


6

I do that every year. There is no limit on the amount you convert; the only consequence is the taxability - you will have to pay taxes for the gains you converted. At the end of the year, the provider will send you the details that you need to include in your tax filing. Note that this is independant of the tax status of the original 6000 - if they were pre-...


3

Retirement benefits (social security) Only taxable Social Security benefits are used in the parental income calculation. The untaxed portion is ignored. The amount that is taxable depends on if you are an individual or married, and what your total income is. Dividends from a Roth IRA Assuming that you mean investment dividends that are not withdrawn ...


0

There are a lot of articles out there with of course, differing opinions. A common theme of many (HERE'S ONE) is that because Social Security grows at something near 8% a year from 62 to 70 (plus an occasional COLA bump) then you're better off withdrawing money from your IRA. By doing so, you'll get a much larger check from SS when you claim benefits. ...


1

Depending on their life's income history, and their life expectancy, there is a large number of different possibilities which combination would be optimal. There is unfortunately no easy way to find the best option; that's why many companies have complex software that can calculate it for you (basically by brute-forcing through all options). A good plan to ...


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