Rethink Your Rollover

roth ira brokerage account

Question: i have 35k i invest and every year i sell about 3k worth of stocks and fund my IRA, make sense tax wise?

i sell 3k and pay taxes on that 3k each year, then turn around and put it into my roth ira and invest it. i mean the only other legit option i see is either putting the portion of my paycheck into my roth instead of into my core brokerage account and investing it, this way i’m not paying taxes on the earnings, or, what’s my other option?

Answer: Whether you should sell 3K of your stocks or use your paycheck to fund your roth depends on what you expect to happen to the stock you are selling. If you think it’s going to go down, yes sell it. Another factor is that if you sell stock thats already lost value you can deduct the loss on your taxes.

Beginner Investing : Roth IRA Facts

roth ira information

Question: Rollover IRA (is it Roth or traditional?)?

I have a rollover IRA (from an old 401K). I am considering funding it more so I started searching online but there is virtually no information re:Rollover IRAs. They either talk about Roth or traditional. So what category does my Rollover fall under?

Answer: Neither AND both. A rollover IRA simply means the funds came from another retirement plan. That is ALL it means. EVERY IRA is either a traditional or a ROTH. In most cases, a 401(k) is rolled into a traditional IRA.

Should You Convert Your IRA To A Roth IRA?

roth ira conversion 2009

Question: In 2009 I am considering converting $200,000 in a Rollover IRA to a Roth IRA (I’m 44). ?

The amount converted will be taxed as income. I would not be able to pay all the taxes on this conversion by April 15, 2010. Would the IRS allow me to pay in installments over time? If so, what is this called by the IRS? (I want to do additional research on this).

Thanks,

Answer: I believe in 2010 you will be able to convert and pay the taxes over 2 years. You may want to wait until then. Also, do you meet the income limitations? Single contributors cannot make more than around $100,000. That will also go away in 2010. You certainly can convert part of it this year. Also, I think ( but am not positive check with an accountant) that you can pay the taxes out of the IRA itself–so you would have the tax money.

No RMD in 2009? Time for a Roth IRA Conversion

roth ira real estate

Question: investment strategies when household income of 220k?

What are some investment tools used by people in this bracket? We have been discussing a max contribution to our 401k accounts, but it seems that we should do more than just this (IRA, CD, Money Market, real estate). What is a good rule of thumb for an emergency savings account? My wife and I are unable to invest in our roth IRAs due to AGI restrictions. What do we need to do with our current ROTH investment that requires 50 dollars per month?

Answer: My advise is to speak to several different Financial Adviser’s.
Ask them many questions. Like how long have they been in their position? Have they ever had any complaints filed against them?

Emergency Funds of 3 to 6 months of expense’s.

Now for the Roth IRA you mention that you can’t invest in your Roth Ira’s because of AGI restrictions, but you turn around in the following sentence and asking what do you need to do with $50 going into a Roth investment. If you max out the Roth then you will have to find somewhere else to put the money.

Pay off your home if you haven’t done so, that way you will have one less stress in your life.

Again, chat with an Financial Adviser and good look in your decisions.

Don’t forget about Term Life, get 5 to 10 times your pay.

Atlanta Real Estate Investing Using IRA|SELF DIRECTED IRA|ROTH IRA

roth ira account rules

Question: Question about the 5 year rule on a Roth IRA account.?

I’m 22 years old and have got into investing. I have about 10,000 that i have been playing around with and would really like to start an Roth IRA. All though I plan on buying a house and going back to school and would like access to the money in the next 5-10 years.

I have been told that if you have money in a Roth IRA that you can take the money out without tax penalties if it has been in the account for 5 years or more.

Can someone explain this to me in better detail. I always thought that you have to wait till you get 59.5 years old to take it out. Please help me thanks

Answer: You do.

You pay no taxes when you make qualified withdrawals after age 59½ and your account has been open at least five years.

What can a Roth IRA do for you? – Vanguard