Personal Finance & Money Stack Exchange
Personal Finance & Money Stack Exchange

Questions tagged [roth-ira]

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

A Roth IRA is a type of US retirement account where deposits are made with money that has already been taxed, and then the funds grow and may be withdrawn tax free at retirement. The deposited money may be withdrawn tax and penalty free at any time; the growth may not be withdrawn sans penalty prior to age 59-1/2.

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Saving for retirement: How much is enough?

How to save I'm in my late twenties and am trying to get started off on the right foot saving for retirement. I have learned that retirement savings should usually be placed in retirement accounts in the following order: Roth 401(k) - Just enough…
Stainsor
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I'm 18 and have 6 grand. What should I do with it?

I'm 18 and about to go to college. Luckily, I don't have to worry about student loans or most other living expenses. I've been working and have over $6,000 (will probably be about $7,000 by the end of summer) in my bank account. I don't want to…
Emily Harms
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Can I hire my kid and start a Roth IRA for him?

I own an LLC, of which I am currently the sole member. It's my main source of income. I am wondering if there is a reason why I could not do the following: Hire my child as a part-time employee of the LLC, for an annual salary of $5500. Start a…
painter48179
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IRS sent me a letter...I messed up by unwittingly taking money out of a Roth IRA and reporting it incorrectly

I recently received a letter from the IRS based on my taxes for 2015. I believe I did not understand the proper workings of a Roth IRA. I was under the impression I could pull my money out and only report any distribution increases on my taxes. …
JonH
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Started new job. Rollover previous employer 401k to new 401k, IRA or Roth IRA?

I recently started a new job and have a 401k from my previous employer that I don't know what to do with. Should I roll it into my new employer's 401k, a traditional IRA or a Roth IRA?
jamesaharvey
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Why is half of your IRA Required Minimum Distribution forfeited if you do not make minumum withdrawals by 70.5 years of age?

I do not understand this rule: "IRA confiscates half of your account if you do not make your withdrawals by 70.5 years of age". Why? What does it mean to make withdrawals? Just to request your money getting transferred to your bank account? or get…
YohanRoth
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What are the differences between a "traditional" IRA and a Roth IRA?

I hear that a traditional IRA offers a tax deduction whereas a Roth IRA doesn't, but there's got to be more to it than that: What makes a Roth IRA any good, if it doesn't provide a tax deduction? Wouldn't I be better off just investing my money…
bms1
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Is a Roth IRA good for a high schooler?

I am a high-school Senior who will not earn enough income working this summer to have to pay income taxes. I have a full ride to college, so I was thinking of using my earnings/savings for retirement. Does putting my earnings in a Roth IRA mean that…
maxbear123
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401(k) Contribution When Employer Has No Match?

Long time lurker, first time asker here. I've seen some similar questions to mine here, but nothing exactly in the same circumstance. I've seen almost near-consensus that the ordering for investing should be as so: Fund an employer's 401(k) up…
bhamby
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How to invest after 401k and Roth IRA are maxed?

I'm in my 20's. I'm a big saver and I think I've covered the basics, including: Paying off all high interest (>3%) debt. Getting the full company match out of my 401k. Maxing out my Roth IRA for the year. I still have a decent amount of cash flow,…
James Jones
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Should I pay off my student loan before putting money into Roth IRA?

I have about $7K in student loans remaining at 6.25% I also haven't made a contribution to my Roth IRA for 2010. I'm thinking off paying off my loan at the end of the year, but that'll not really leave me enough free cash to maximize my Roth…
Mike Sherov
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Why are there income limits for Roth IRAs?

Why does the IRS establish a Modified AGI limit for contributions to Roth IRA accounts? I can understand having a limit for Traditional IRA accounts because the government doesn't want to lose out on taxes in a high tax bracket, but Roth IRA…
Daniel
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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 to withdraw my contributions whenever I want…
largecoconutballs06
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My company is suspending its 401K match; what is the best thing to do with my money?

I am a 25 y/o US citizen working in the US for a US company. Given these days' hard times, my company has elected to suspend its 401k match. I make too much money to contribute to a Roth IRA. What is the most efficient thing to do with my money? Do…
Runeaway3
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Why do some companies offer 401k retirement plans?

Why do companies offer 401k (or other) retirement plans? Let me elaborate this... I understand that it could be part of an employee's benefits and that a retirement plan option might increase the company's value and improve employees' retention but…
Marsellus Wallace
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