What exactly is a Roth IRA and should I start putting money in it? Im 22?
Q. Im 22 and just started my first "real job" right out of college. About to finish paying off my student loan and was looking at also investing in mutual funds and a Roth IRA. What all is involved with a Roth IRA? Does it have its on interest rate or whats the deal?
Asked by qaperson6859 - Tue Mar 13 13:54:20 2007 - - 8 Answers - 0 Comments
A. A Roth IRA is a tax advantaged account that allows you to put money into it after taxes, and allows the money to grow tax-free from that point forward. Therefore, as your investments grow, you will not have to pay taxes on that money ever again. The only potential downside is that once the money is invested in a Roth, you cannot take it out until you are 59.5 years old (government regulation). But, there is a huge advantage to having your money grow tax free. And once the money is in the Roth IRA account, you can invest in anything you want - stocks, mutual funds, bonds, etc. It is the perfect savings tool for someone in your situation.
Answered by cry me a liver 35 - Tue Mar 13 14:02:51 2007
Q. Im 22 and just started my first "real job" right out of college. About to finish paying off my student loan and was looking at also investing in mutual funds and a Roth IRA. What all is involved with a Roth IRA? Does it have its on interest rate or whats the deal?
Asked by qaperson6859 - Tue Mar 13 13:54:20 2007 - - 8 Answers - 0 Comments
A. A Roth IRA is a tax advantaged account that allows you to put money into it after taxes, and allows the money to grow tax-free from that point forward. Therefore, as your investments grow, you will not have to pay taxes on that money ever again. The only potential downside is that once the money is invested in a Roth, you cannot take it out until you are 59.5 years old (government regulation). But, there is a huge advantage to having your money grow tax free. And once the money is in the Roth IRA account, you can invest in anything you want - stocks, mutual funds, bonds, etc. It is the perfect savings tool for someone in your situation.
Answered by cry me a liver 35 - Tue Mar 13 14:02:51 2007
What's the 2008 contribution limit for Roth 401k and Roth IRA combined?
Q. Like the question asks what is the combined total limit for the Roth 401k and the Roth IRA? I've read too much conflicting information that you can contribute the full 5k in the Roth IRA and 14k in the Roth 401K? Then I've checked with financial advisors and they indicate otherswise. Hm, please CITE sources with your response, need accurate information. Lastly, if anyone know what the combined limit between the Roth401k, Roth IRA and the traditional 401k also list it as well. Thanks! Can Icontribute to all three: Roth 401k, 401k and the Roth IRA? I know you can do the last two but what about all three? I am of course referring to just partial amounts so I don't exceed the 15k annual limit and the as far as I know the 5k limit for… [cont.]
Asked by momo - Mon Dec 31 11:09:52 2007 - - 2 Answers - 0 Comments
A. The 2008 limit for a 401k is $15,500. If you're 50 or older in 2008, you can contribute an additional $5,000. The 2008 limit for IRAs is $5,000. If you're 50 or older on 2008, it's $6,000. However, your ability to contribute to a Roth IRA is reduced or eliminated if your modified adjusted gross income exceeds a certain amount. The amount depends on your filing status. See IRS Publication 17 for details. You can download it from www.irs.gov. The combined limit is the individual limits added together ($20,500 or $26,500 depending on your age and subject to adjustment if have a Roth IRA and your modified AGI exceeds the limit). The limits apply regardless of whether the account is a Roth, traditional, or if you put some money in one of… [cont.]
Answered by The Shadow - Mon Dec 31 12:14:41 2007
Q. Like the question asks what is the combined total limit for the Roth 401k and the Roth IRA? I've read too much conflicting information that you can contribute the full 5k in the Roth IRA and 14k in the Roth 401K? Then I've checked with financial advisors and they indicate otherswise. Hm, please CITE sources with your response, need accurate information. Lastly, if anyone know what the combined limit between the Roth401k, Roth IRA and the traditional 401k also list it as well. Thanks! Can Icontribute to all three: Roth 401k, 401k and the Roth IRA? I know you can do the last two but what about all three? I am of course referring to just partial amounts so I don't exceed the 15k annual limit and the as far as I know the 5k limit for… [cont.]
Asked by momo - Mon Dec 31 11:09:52 2007 - - 2 Answers - 0 Comments
A. The 2008 limit for a 401k is $15,500. If you're 50 or older in 2008, you can contribute an additional $5,000. The 2008 limit for IRAs is $5,000. If you're 50 or older on 2008, it's $6,000. However, your ability to contribute to a Roth IRA is reduced or eliminated if your modified adjusted gross income exceeds a certain amount. The amount depends on your filing status. See IRS Publication 17 for details. You can download it from www.irs.gov. The combined limit is the individual limits added together ($20,500 or $26,500 depending on your age and subject to adjustment if have a Roth IRA and your modified AGI exceeds the limit). The limits apply regardless of whether the account is a Roth, traditional, or if you put some money in one of… [cont.]
Answered by The Shadow - Mon Dec 31 12:14:41 2007
When I change my IRA to a ROTH IRA can I pay the taxes from the IRA?
Q. I am retired and want to change my ira to a roth ira so I don't have to worry about future taxes from the roth ira. what are the rules of the roth ira?
Asked by barry b - Tue Jun 16 17:31:33 2009 - - 1 Answers - 0 Comments
A. It the same rules as for an IRA. The difference is on the withdrawal. Roth's you have already paid them and for a standard IRA you have not. So on each payment from an IRA you will owe taxes. On a Roth each payment will be tax exempt. Yes, you can have them withhold the taxes from the amount being rolled over. Just tell them what percentage to withhold (min 10%). Not sure why you want to pay a lump sum to the IRS at this point? Are you expecting large gains from the market???
Answered by Scott - Sat Jun 20 13:08:23 2009
Q. I am retired and want to change my ira to a roth ira so I don't have to worry about future taxes from the roth ira. what are the rules of the roth ira?
Asked by barry b - Tue Jun 16 17:31:33 2009 - - 1 Answers - 0 Comments
A. It the same rules as for an IRA. The difference is on the withdrawal. Roth's you have already paid them and for a standard IRA you have not. So on each payment from an IRA you will owe taxes. On a Roth each payment will be tax exempt. Yes, you can have them withhold the taxes from the amount being rolled over. Just tell them what percentage to withhold (min 10%). Not sure why you want to pay a lump sum to the IRS at this point? Are you expecting large gains from the market???
Answered by Scott - Sat Jun 20 13:08:23 2009
What is the difference between a Roth IRA/IRA and mutual funds?
Q. Isn't an IRA or Roth IRA just a bunch of mutual funds or should I go to Investing 101? Thanks.
Asked by brewbeer212 - Wed Jan 3 01:03:36 2007 - - 5 Answers - 0 Comments
A. Yep, you're Investing 101 material and so are a million other people! The good news is that you are smart enough to ask the right question. An IRA ***of any kind*** is nothing but a retirement account designed to defer earned and unearned income until you are eligible to make withdrawals. In other words, it's an empty shell until you put something in it. So, what can you put into an IRA? The average investor invests in stocks, bonds and mutual funds. The majority of wage earners invest in funds. More experienced investors buy stocks, bonds, options contracts and real estate in theirs. Check out the IRS website for complete information on this subject. Mutual funds are investment companies that buy stocks and bonds with the objective of… [cont.]
Answered by equityhawk - Wed Jan 3 02:05:06 2007
Q. Isn't an IRA or Roth IRA just a bunch of mutual funds or should I go to Investing 101? Thanks.
Asked by brewbeer212 - Wed Jan 3 01:03:36 2007 - - 5 Answers - 0 Comments
A. Yep, you're Investing 101 material and so are a million other people! The good news is that you are smart enough to ask the right question. An IRA ***of any kind*** is nothing but a retirement account designed to defer earned and unearned income until you are eligible to make withdrawals. In other words, it's an empty shell until you put something in it. So, what can you put into an IRA? The average investor invests in stocks, bonds and mutual funds. The majority of wage earners invest in funds. More experienced investors buy stocks, bonds, options contracts and real estate in theirs. Check out the IRS website for complete information on this subject. Mutual funds are investment companies that buy stocks and bonds with the objective of… [cont.]
Answered by equityhawk - Wed Jan 3 02:05:06 2007
Is it possible to change a Roth IRA to a traditional IRA?
Q. I am young, and I know most financial advisors/calculators out there tell you I would stand to benefit from being in a ROTH IRA. However, after researching this, I know longer believe there's any guarantee the gov't will keep the policy of not taxing my returns when I retire 30 years from now. I'd rather take the tax benefit now. Your thoughts?
Asked by Brian T - Wed Sep 19 10:16:04 2007 - - 2 Answers - 0 Comments
A. If you contributed the money into the Roth this year (2007) you can do what is called a "recharacterization." The company you invest with will have a form to fill out. The only thing is, you can recharacterize THIS year's contribution back to the traditional IRA, but any contributions you made to a Roth in prior years cannot be recharacterized.
Answered by dan - Wed Sep 19 10:22:17 2007
Q. I am young, and I know most financial advisors/calculators out there tell you I would stand to benefit from being in a ROTH IRA. However, after researching this, I know longer believe there's any guarantee the gov't will keep the policy of not taxing my returns when I retire 30 years from now. I'd rather take the tax benefit now. Your thoughts?
Asked by Brian T - Wed Sep 19 10:16:04 2007 - - 2 Answers - 0 Comments
A. If you contributed the money into the Roth this year (2007) you can do what is called a "recharacterization." The company you invest with will have a form to fill out. The only thing is, you can recharacterize THIS year's contribution back to the traditional IRA, but any contributions you made to a Roth in prior years cannot be recharacterized.
Answered by dan - Wed Sep 19 10:22:17 2007
Can I have a Roth IRA and open a SEP-IRA for my business?
Q. I own my own business (its a C Corp) and I have a Roth IRA from a previous job. I would like to open a SEP-IRA for my business (no other employees yet). I want to put my paycheck in the SEP. (Ithink I can deposit $45K/yr tax free into a SEP.) Can I have two retirement accounts?
Asked by Pure_Alpha - Fri Jan 5 17:44:01 2007 - - 1 Answers - 0 Comments
A. Yes you can have a Roth and a SEP. Because you're a C-Corp and not considered self-employed you can't put 45k in the SEP (2007 number, it's 44 in 2006) unless you make(made) over 180k. SEP contributions are limited to 25% of your income. And, if you made that much then you can't contribute to the ROTH as you exceed the income limitation for that. If you anticipate making less than 180k in w-2 wages then you should consider a solo-401k. To maximize your contribution in that plan you only need to make 118,000. And, if you do make over the 180k and are over age 50 then you should STILL consider a 401k as you can get 50k into one of those. Also, if you anticipate having employees then definately a 401k...you don't have to put… [cont.]
Answered by digdowndeepnseattle - Fri Jan 5 18:12:01 2007
Q. I own my own business (its a C Corp) and I have a Roth IRA from a previous job. I would like to open a SEP-IRA for my business (no other employees yet). I want to put my paycheck in the SEP. (Ithink I can deposit $45K/yr tax free into a SEP.) Can I have two retirement accounts?
Asked by Pure_Alpha - Fri Jan 5 17:44:01 2007 - - 1 Answers - 0 Comments
A. Yes you can have a Roth and a SEP. Because you're a C-Corp and not considered self-employed you can't put 45k in the SEP (2007 number, it's 44 in 2006) unless you make(made) over 180k. SEP contributions are limited to 25% of your income. And, if you made that much then you can't contribute to the ROTH as you exceed the income limitation for that. If you anticipate making less than 180k in w-2 wages then you should consider a solo-401k. To maximize your contribution in that plan you only need to make 118,000. And, if you do make over the 180k and are over age 50 then you should STILL consider a 401k as you can get 50k into one of those. Also, if you anticipate having employees then definately a 401k...you don't have to put… [cont.]
Answered by digdowndeepnseattle - Fri Jan 5 18:12:01 2007
How do I invest my money in a Roth IRA?
Q. A friend told me that I should put my money in a Roth IRA for my future investments and retirement. I don't know much about it and/or how to put my money into one but I am curious. I am a 17 year old emancipated minor in California who has a bank account already and a job. Thanks for all the help in telling me what a Roth IRA is and how to put my money in one (if I even should) in advance.
Asked by Thomas D - Tue Jan 13 18:24:49 2009 - - 3 Answers - 0 Comments
A. I think that it is great you are thinking about your future finances and retirment. It is never too early. Just make sure that any money you put in an investment is disposable cash, meaning you are willing to live without it. I think your friend is right. The sooner you start, the better because the money compounds over time. Basically, a Roth IRA is a tax deferred earning account. You can open an IRA account any where. It just depends where you want to invest it in. For example, I use my IRA to invest in stocks. So I open the account with E-trade to buy shares of the company I am interested in. You can use your IRA money in CD's, Bonds, Mutual Funds, or whatever you want. Just know you are capped at the limit of $5K this year. Good… [cont.]
Answered by Craziee Panda - Wed Jan 14 01:30:52 2009
Q. A friend told me that I should put my money in a Roth IRA for my future investments and retirement. I don't know much about it and/or how to put my money into one but I am curious. I am a 17 year old emancipated minor in California who has a bank account already and a job. Thanks for all the help in telling me what a Roth IRA is and how to put my money in one (if I even should) in advance.
Asked by Thomas D - Tue Jan 13 18:24:49 2009 - - 3 Answers - 0 Comments
A. I think that it is great you are thinking about your future finances and retirment. It is never too early. Just make sure that any money you put in an investment is disposable cash, meaning you are willing to live without it. I think your friend is right. The sooner you start, the better because the money compounds over time. Basically, a Roth IRA is a tax deferred earning account. You can open an IRA account any where. It just depends where you want to invest it in. For example, I use my IRA to invest in stocks. So I open the account with E-trade to buy shares of the company I am interested in. You can use your IRA money in CD's, Bonds, Mutual Funds, or whatever you want. Just know you are capped at the limit of $5K this year. Good… [cont.]
Answered by Craziee Panda - Wed Jan 14 01:30:52 2009
How soon after contributing to a traditional IRA can I convert it to a Roth IRA?
Q. Can I do it immediately? Part of the reason why I ask is because I want to contribute to a SEP IRA and then convert that to Roth also. The other reason is I realized for this year I won't make more than 105K. I know net year it won't matter (2010) I'm not saying I won't have to pay taxes, LOL. I just want to convert because I believe I will be in a higher tax bracket when I retire.
Asked by Laughing Hyena - Sun Oct 18 23:35:45 2009 - - 2 Answers - 0 Comments
A. Provided you qualify under the 2009 conversion rules, you can convert the Traditional or SEP IRA to a Roth at any time, even right after your investments. However, when you convert, you would then be paying the higher taxes because of the conversion, or basically wiping out the current year s tax deduction. So for current year tax purposes you may be better off using the Roth. The real potential benefit comes with the long term nature of the Roth, and your expectations of income taxes after you retire. If you feel that income taxes will be higher in the future, then converting to a Roth in 2009 would help you avoid paying the higher income tax later in life. Your best bet would be to discuss this with a financial and/or tax advisor who can… [cont.]
Answered by Schwab Money and More Panel - Thu Oct 22 12:50:59 2009
Q. Can I do it immediately? Part of the reason why I ask is because I want to contribute to a SEP IRA and then convert that to Roth also. The other reason is I realized for this year I won't make more than 105K. I know net year it won't matter (2010) I'm not saying I won't have to pay taxes, LOL. I just want to convert because I believe I will be in a higher tax bracket when I retire.
Asked by Laughing Hyena - Sun Oct 18 23:35:45 2009 - - 2 Answers - 0 Comments
A. Provided you qualify under the 2009 conversion rules, you can convert the Traditional or SEP IRA to a Roth at any time, even right after your investments. However, when you convert, you would then be paying the higher taxes because of the conversion, or basically wiping out the current year s tax deduction. So for current year tax purposes you may be better off using the Roth. The real potential benefit comes with the long term nature of the Roth, and your expectations of income taxes after you retire. If you feel that income taxes will be higher in the future, then converting to a Roth in 2009 would help you avoid paying the higher income tax later in life. Your best bet would be to discuss this with a financial and/or tax advisor who can… [cont.]
Answered by Schwab Money and More Panel - Thu Oct 22 12:50:59 2009
Can you find a skeptical article on Roth IRA vs Traditional IRA?
Q. Most published articles paint a very favorable picture of Roth IRA versus the Traditional IRA (and other IRA-like plans). I have done my own analysis and I honestly think the Roth is a clever government scheme to collect more taxes, and under no circumstances have I been able to think up a scenario where the individual taxpayer/investor comes out ahead with a Roth. Can you point out any well-written article that supports my opinion? Thanks I am not looking to debate my findings. I just want to find people who agree.
Asked by alex - Sat Sep 15 10:55:44 2007 - - 2 Answers - 0 Comments
A. It might help if you post the analysis you did proving your theory.
Answered by Tony - Sat Sep 15 11:05:19 2007
Q. Most published articles paint a very favorable picture of Roth IRA versus the Traditional IRA (and other IRA-like plans). I have done my own analysis and I honestly think the Roth is a clever government scheme to collect more taxes, and under no circumstances have I been able to think up a scenario where the individual taxpayer/investor comes out ahead with a Roth. Can you point out any well-written article that supports my opinion? Thanks I am not looking to debate my findings. I just want to find people who agree.
Asked by alex - Sat Sep 15 10:55:44 2007 - - 2 Answers - 0 Comments
A. It might help if you post the analysis you did proving your theory.
Answered by Tony - Sat Sep 15 11:05:19 2007
Can I have both a traditional retirement account at work and a roth ira i personally set up outside of work?
Q. I am a part of OPERS (Ohio Public Employees Retirement System), and am wondering if its legal to setup a Roth IRA through a separate company like Sharebuilder. I've not read that it is legal, nor have I read that it is illegal, to have more than one retirement account.
Asked by thenoffya - Sun Nov 8 14:58:10 2009 - - 1 Answers - 0 Comments
A. yes, you can have both an retirement account through your employer and a ROTH IRA, as long as you meet the income requirements.
Answered by sbinlb - Sun Nov 8 15:30:18 2009
Q. I am a part of OPERS (Ohio Public Employees Retirement System), and am wondering if its legal to setup a Roth IRA through a separate company like Sharebuilder. I've not read that it is legal, nor have I read that it is illegal, to have more than one retirement account.
Asked by thenoffya - Sun Nov 8 14:58:10 2009 - - 1 Answers - 0 Comments
A. yes, you can have both an retirement account through your employer and a ROTH IRA, as long as you meet the income requirements.
Answered by sbinlb - Sun Nov 8 15:30:18 2009
What company is the best to start up a Roth IRA? What are the best mutual funds to invest in?
Q. I am looking to start up a Roth IRA since I am in a low tax bracket, and I am looking to invest in no load mutual funds, long-term. I am looking for monthly compounded interest and no fees.
Asked by ronald07 - Thu Nov 26 23:29:38 2009 - - 1 Answers - 0 Comments
A. I'm glad you are doing your homework. I would start with the Royce mutual funds. Invest in the Royce Low Price Stock Fund symbol RYLPX. I have owned this fund for years and I am glad I did. The Fund manager Whitney George has been with Royce for 18 years and has done a great job year in and year out.
Answered by Uncle D - Thu Nov 26 23:42:22 2009
Q. I am looking to start up a Roth IRA since I am in a low tax bracket, and I am looking to invest in no load mutual funds, long-term. I am looking for monthly compounded interest and no fees.
Asked by ronald07 - Thu Nov 26 23:29:38 2009 - - 1 Answers - 0 Comments
A. I'm glad you are doing your homework. I would start with the Royce mutual funds. Invest in the Royce Low Price Stock Fund symbol RYLPX. I have owned this fund for years and I am glad I did. The Fund manager Whitney George has been with Royce for 18 years and has done a great job year in and year out.
Answered by Uncle D - Thu Nov 26 23:42:22 2009
Why is there an upper income limit for contributing to a Roth IRA?
Q. People over a certain income are not allowed to make any contributions to a Roth IRA. Why? Wouldn't people with high income rather pay the taxes later anyway (as they would do with a traditional IRA)? In other words, doesn't this rule just prohibit people from doing something they'd already rather not do? Mrs. F: in addition to the upper income limit, there's also a yearly contribution limit ($4000 this year). But Roth IRAs are still very, very, worth it! You can always put more money in next year, and the year after that, etc. Contribute the maximum, or as much as you can, every year; you'll be glad later.
Asked by rainfingers - Wed Sep 27 15:51:49 2006 - - 3 Answers - 0 Comments
A. The limits are for AGI over $160,000 if married (MFJ) and $100,000 for single folks. I would assume that the idea of having a limit is to give tax breaks to lower income folks and continue to tax the "rich". All of this a political decision by Congress not the IRS.
Answered by unknown - Wed Sep 27 16:05:58 2006
Q. People over a certain income are not allowed to make any contributions to a Roth IRA. Why? Wouldn't people with high income rather pay the taxes later anyway (as they would do with a traditional IRA)? In other words, doesn't this rule just prohibit people from doing something they'd already rather not do? Mrs. F: in addition to the upper income limit, there's also a yearly contribution limit ($4000 this year). But Roth IRAs are still very, very, worth it! You can always put more money in next year, and the year after that, etc. Contribute the maximum, or as much as you can, every year; you'll be glad later.
Asked by rainfingers - Wed Sep 27 15:51:49 2006 - - 3 Answers - 0 Comments
A. The limits are for AGI over $160,000 if married (MFJ) and $100,000 for single folks. I would assume that the idea of having a limit is to give tax breaks to lower income folks and continue to tax the "rich". All of this a political decision by Congress not the IRS.
Answered by unknown - Wed Sep 27 16:05:58 2006
Can I contribute to individual roth ira and 401k roth ira at the same time ?
Q. I've contributed the maximum allowed for the 401k roth ira ($15500). Can I contribute another ($4500-$5500?) to an individual roth ira account? Or any other individual ira account in the same year?
Asked by tax_question - Wed Jan 10 01:22:38 2007 - - 3 Answers - 0 Comments
A. The short answer is yes, you can still contribute to individual Roth and Traditional IRAs. However, when you are covered by your employers retirement plan there are limits to how much you can contribute. The limite is dependent on your modified adjusted gross income and your age. See IRS document Publication 590, page 14 for explanation. If you have a spouse who makes less or no income, you may also save money (and reduce your taxes) by opening an IRA for your spouse. Best wishes.
Answered by JQT - Wed Jan 10 10:50:19 2007
Q. I've contributed the maximum allowed for the 401k roth ira ($15500). Can I contribute another ($4500-$5500?) to an individual roth ira account? Or any other individual ira account in the same year?
Asked by tax_question - Wed Jan 10 01:22:38 2007 - - 3 Answers - 0 Comments
A. The short answer is yes, you can still contribute to individual Roth and Traditional IRAs. However, when you are covered by your employers retirement plan there are limits to how much you can contribute. The limite is dependent on your modified adjusted gross income and your age. See IRS document Publication 590, page 14 for explanation. If you have a spouse who makes less or no income, you may also save money (and reduce your taxes) by opening an IRA for your spouse. Best wishes.
Answered by JQT - Wed Jan 10 10:50:19 2007
What do you do when you make Roth IRA contributions for a year in which your annual income exceeds the limits?
Q. Let's say a couple made Roth IRA contributions for 2005 in Feb 2005. In 2006, they realized that their 2005 income was much higher than they originally expected and exceeded the $160K limit for couples. What are the options available now to undo it?
Asked by phxsunsfanaz - Mon May 22 00:54:20 2006 - - 1 Answers - 0 Comments
A. You better talk to a tax person. If you've filed already, and took the deduction, then you'll have to amend. But if you went to file and realized your mistake, they can help you back out your money.
Answered by ThaneTheBrain - Mon May 22 00:58:13 2006
Q. Let's say a couple made Roth IRA contributions for 2005 in Feb 2005. In 2006, they realized that their 2005 income was much higher than they originally expected and exceeded the $160K limit for couples. What are the options available now to undo it?
Asked by phxsunsfanaz - Mon May 22 00:54:20 2006 - - 1 Answers - 0 Comments
A. You better talk to a tax person. If you've filed already, and took the deduction, then you'll have to amend. But if you went to file and realized your mistake, they can help you back out your money.
Answered by ThaneTheBrain - Mon May 22 00:58:13 2006
What to do with the capital gain from the excess roth IRA contribtution?
Q. I overcontributed $1200 to my roth IRA for 2006. This contribution has made some capital gain. I understand that I need to file a IRA distribution to take out the excess contribution to avoid IRA penalty. However, what should I do with the gain from the excess contribution? Thanks,
Asked by NewIntheCity - Tue Feb 13 22:24:29 2007 - - 1 Answers - 0 Comments
A. Earnings on the excess will be considered as received in the year the contribution was made, and are taxable for that year, plus the 10% penalty (assuming you are under 59 1/2). You can possibly avoid the excise tax if you more the excess Roth contribution and the earnings on the excess either by transferring to a regular IRA (trustee-to- trustee) before the deadline for the year in which the contribution is made. I would probably suggest contacting your IRA broker to see if they can help you out and offer any alternatives.
Answered by jerry - Tue Feb 13 22:32:44 2007
Q. I overcontributed $1200 to my roth IRA for 2006. This contribution has made some capital gain. I understand that I need to file a IRA distribution to take out the excess contribution to avoid IRA penalty. However, what should I do with the gain from the excess contribution? Thanks,
Asked by NewIntheCity - Tue Feb 13 22:24:29 2007 - - 1 Answers - 0 Comments
A. Earnings on the excess will be considered as received in the year the contribution was made, and are taxable for that year, plus the 10% penalty (assuming you are under 59 1/2). You can possibly avoid the excise tax if you more the excess Roth contribution and the earnings on the excess either by transferring to a regular IRA (trustee-to- trustee) before the deadline for the year in which the contribution is made. I would probably suggest contacting your IRA broker to see if they can help you out and offer any alternatives.
Answered by jerry - Tue Feb 13 22:32:44 2007
Can I rollover Traditional IRA to Roth IRA in 2007? Under what circumstance does it make sense?
Q. I put money in traditional IRA for last 3 years, can I convert them all to Roth IRA in 2007? Under what circumstance does it make sense?
Asked by Shu Chen - Wed Nov 7 20:18:17 2007 - - 3 Answers - 0 Comments
A. none - you'll lose 20-40% to taxes and penalty - there is no need to do it - it makes no sense
Answered by Dr. Deth - Wed Nov 7 21:31:00 2007
Q. I put money in traditional IRA for last 3 years, can I convert them all to Roth IRA in 2007? Under what circumstance does it make sense?
Asked by Shu Chen - Wed Nov 7 20:18:17 2007 - - 3 Answers - 0 Comments
A. none - you'll lose 20-40% to taxes and penalty - there is no need to do it - it makes no sense
Answered by Dr. Deth - Wed Nov 7 21:31:00 2007
What happens after opening a Roth Ira in a Mutual Fund?
Q. Hello, I have a Roth Ira CD in a bank, I am thinking about buying a mutual fund and put my Roth Ira there instead. But, I would like to know: -How to open a Roth Ira in a Mutual Fund? -Is it better to open the Roth Ira in a mutual fund directly with the mutual fund company? -After opening the Roth Ira in a mutual fund, what should I expect? What happens after that? Is it safe? Thank you
Asked by JuneStar - Tue Aug 25 14:19:28 2009 - - 5 Answers - 0 Comments
A. You asked: -Is it better to open the Roth Ira in a mutual fund directly with the mutual fund company? Yes it is. The banks and discount brokers will charge you a fee to invest in Vanguard's and other very low expense funds. -After opening the Roth Ira in a mutual fund, what should I expect? What happens after that? Is it safe? You will get quarterly statements (Vanguard will charge you an account maintenance fee if you insist on paper statements. Get everything from them via the web, print it out yourself if you need paper and then they will not charge you extra) showing account activity. What happens after that? Sit back and hopefully watch the account value grow. Is it safe? Value of the fund will vary as goes the stock… [cont.]
Answered by gosh137 - Tue Aug 25 21:10:40 2009
Q. Hello, I have a Roth Ira CD in a bank, I am thinking about buying a mutual fund and put my Roth Ira there instead. But, I would like to know: -How to open a Roth Ira in a Mutual Fund? -Is it better to open the Roth Ira in a mutual fund directly with the mutual fund company? -After opening the Roth Ira in a mutual fund, what should I expect? What happens after that? Is it safe? Thank you
Asked by JuneStar - Tue Aug 25 14:19:28 2009 - - 5 Answers - 0 Comments
A. You asked: -Is it better to open the Roth Ira in a mutual fund directly with the mutual fund company? Yes it is. The banks and discount brokers will charge you a fee to invest in Vanguard's and other very low expense funds. -After opening the Roth Ira in a mutual fund, what should I expect? What happens after that? Is it safe? You will get quarterly statements (Vanguard will charge you an account maintenance fee if you insist on paper statements. Get everything from them via the web, print it out yourself if you need paper and then they will not charge you extra) showing account activity. What happens after that? Sit back and hopefully watch the account value grow. Is it safe? Value of the fund will vary as goes the stock… [cont.]
Answered by gosh137 - Tue Aug 25 21:10:40 2009
Where do i invest my roth ira money of $5000 in this economy?
Q. I am planning on contributing $5000 to my roth ira account before april 15th for 2008 tax year. i am not sure hold the money as money market fund (that is cash) in roth ira account or buy something with this contribution? the past contribution have lost about 50% value as they were in three different mutual funds... your opinion on this...thanks.
Asked by mira, - Sun Mar 22 09:19:38 2009 - - 6 Answers - 0 Comments
A. That is just about average or maybe a tad worse than average, depending. One option is not to invest it in anything other than a money market account. That way you will not loose a thing. Another option is to add to your current positions in your mutual funds. After all they are 50% cheaper now. I just added to one of mine. A 3rd option worth considering is to invest in a mutual fund that is not so likely to loose so much value. Sort of a counter balance to sort of reduce the overall risk--a bond fund. With the potential of inflation just around the corner though, I do not know if that is such a great idea or not. It might be for a year or so but beyond that, there is considerable risk. GLD is a potential option at least for a… [cont.]
Answered by muncie birder - Sun Mar 22 09:51:47 2009
Q. I am planning on contributing $5000 to my roth ira account before april 15th for 2008 tax year. i am not sure hold the money as money market fund (that is cash) in roth ira account or buy something with this contribution? the past contribution have lost about 50% value as they were in three different mutual funds... your opinion on this...thanks.
Asked by mira, - Sun Mar 22 09:19:38 2009 - - 6 Answers - 0 Comments
A. That is just about average or maybe a tad worse than average, depending. One option is not to invest it in anything other than a money market account. That way you will not loose a thing. Another option is to add to your current positions in your mutual funds. After all they are 50% cheaper now. I just added to one of mine. A 3rd option worth considering is to invest in a mutual fund that is not so likely to loose so much value. Sort of a counter balance to sort of reduce the overall risk--a bond fund. With the potential of inflation just around the corner though, I do not know if that is such a great idea or not. It might be for a year or so but beyond that, there is considerable risk. GLD is a potential option at least for a… [cont.]
Answered by muncie birder - Sun Mar 22 09:51:47 2009
Is 18 years old the minimum age for a Roth IRA?
Q. I have called a few places - they do not offer Roth's to minors. I had been planning on setting up a Roth IRA for my newborn. I only learned the power of the Roth after I could not contribute due to phase out. If this is the case (No Roth for minors) - is the 529 is the best place to be putting money for the future of child?
Asked by windhatr - Tue Jan 29 18:31:11 2008 - - 5 Answers - 0 Comments
A. To contribute to a Roth IRA, you must have earned income and it must be in your name. You can't start one for a minor.
Answered by bud68 - Tue Jan 29 19:02:54 2008
Q. I have called a few places - they do not offer Roth's to minors. I had been planning on setting up a Roth IRA for my newborn. I only learned the power of the Roth after I could not contribute due to phase out. If this is the case (No Roth for minors) - is the 529 is the best place to be putting money for the future of child?
Asked by windhatr - Tue Jan 29 18:31:11 2008 - - 5 Answers - 0 Comments
A. To contribute to a Roth IRA, you must have earned income and it must be in your name. You can't start one for a minor.
Answered by bud68 - Tue Jan 29 19:02:54 2008
Do I need to report anything to my accountant regarding my Roth IRA?
Q. Is there anything about the Roth IRA that is considered tax deductible? Is there any reason why I would want or need to file anything with the IRS regarding my Roth IRA?
Asked by bcsurfclub - Sat Feb 16 07:23:00 2008 - - 4 Answers - 0 Comments
A. You should always tell your accountant about your ROTH contributions and/or withdrawals. The Roth IRA contributions are NOT deductible. However, distributions from a Roth MAY be included in income and MAY be subject to a penalty tax under certain circumstances. Also, some individuals are not eligible to make a contribution to a roth ira if they are over a certain income level. If they make a contribution and are not entitled to do so, there are penalties for leaving that money in the Roth and these penalties are assessed each and every year until the funds are withdrawn. Any earnings must be withdrawn also and are subject to the penalty as well. Good Luck!
Answered by CB CPA in TN - Sat Feb 16 07:40:51 2008
Q. Is there anything about the Roth IRA that is considered tax deductible? Is there any reason why I would want or need to file anything with the IRS regarding my Roth IRA?
Asked by bcsurfclub - Sat Feb 16 07:23:00 2008 - - 4 Answers - 0 Comments
A. You should always tell your accountant about your ROTH contributions and/or withdrawals. The Roth IRA contributions are NOT deductible. However, distributions from a Roth MAY be included in income and MAY be subject to a penalty tax under certain circumstances. Also, some individuals are not eligible to make a contribution to a roth ira if they are over a certain income level. If they make a contribution and are not entitled to do so, there are penalties for leaving that money in the Roth and these penalties are assessed each and every year until the funds are withdrawn. Any earnings must be withdrawn also and are subject to the penalty as well. Good Luck!
Answered by CB CPA in TN - Sat Feb 16 07:40:51 2008
From Yahoo Answer Search: 'roth ira'
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You decide to roll over the distribution into a Roth IRA . Because RMDs are not required for 2009, a 2009 withdrawal is not considered to be an RMD. ...
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A change in the tax law which takes effect January 1 2005 will make more individuals eligible to convert their traditional IRAs to Roth IRAs
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Two of the most popular individual retirement account options are the traditional . IRA. and the . Roth IRA. . The basis of both of these plans is to provide a.
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