Roth IRA, Traditional IRA, 401K » account http://www.iraroth.net IRA Questions and Answers Tue, 17 Jan 2012 00:09:43 +0000 en hourly 1 http://wordpress.org/?v=3.3.1 What is the difference between a roth IRA and a normal investment account by a broker? http://www.iraroth.net/2011/03/what-is-the-difference-between-a-roth-ira-and-a-normal-investment-account-by-a-broker-2/ http://www.iraroth.net/2011/03/what-is-the-difference-between-a-roth-ira-and-a-normal-investment-account-by-a-broker-2/#comments Thu, 03 Mar 2011 22:25:48 +0000 admin http://www.iraroth.net/2011/03/what-is-the-difference-between-a-roth-ira-and-a-normal-investment-account-by-a-broker-2/ Question by Claudio F: What is the difference between a roth IRA and a normal investment account by a broker?
1. In both cases I can invest only after tax money.
2. I can withdraw my money whenever I want in both cases.
3. I can only contribute $ 5,000 per year in the roth IRA while I can contribute how much I want with a normal investment account.

So why would I choose to open a roth IRA instead of a normal investment account where I can invest how much I want?

Best answer:

Answer by S
Any growth experiened in a ROTH IRA account is not taxed. Nor is taxed when you withdraw the money.

With a standard investment you will be taxed when you realize any profit by selling the investment.

So take an example where you have a ROTH IRA and a standard investment. Both start at 10,000 and both grow by 10%, to 11,000.

When you withdraw your IRA (assuming no penalties for ealry with drawal), you will get the full $ 11,000

When you withrdraw the investment you will have to pay taxes on the $ 1,000 of growth, so maybe you walk away with only $ 10,700.

This difference could add up to a huge amount over the lifetime of a ROTH IRA

What do you think? Answer below!

]]> http://www.iraroth.net/2011/03/what-is-the-difference-between-a-roth-ira-and-a-normal-investment-account-by-a-broker-2/feed/ 1 What happens to your debts, checking/savings account, stocks, and IRAs when you die? http://www.iraroth.net/2010/04/what-happens-to-your-debts-checkingsavings-account-stocks-and-iras-when-you-die/ http://www.iraroth.net/2010/04/what-happens-to-your-debts-checkingsavings-account-stocks-and-iras-when-you-die/#comments Thu, 29 Apr 2010 21:09:11 +0000 admin http://www.iraroth.net/2010/04/what-happens-to-your-debts-checkingsavings-account-stocks-and-iras-when-you-die/ Since there are a lot of possible variables, here’s my situation. I’m not planning on dying, just trying to figure how much life insurance I should have and what I can do ahead of time.
Single. Live with both parents. No dependents.
10k student loans
10k ING savings
10k stocks
2k IRA
2k credit card debt
4k car in my name

So far I’ve learned on Sallie Mae.com that student loans are eligible for discharge upon death. Good reason not to pay them off when you have a nice 3% interest rate.
Now, I’d like my parents to be able to just take my car, savings/checking accounts (they have the same bank), Roth IRA, and stocks in the event of my death. How can I allow them to do that?
Which of my debts become null? And what accounts can they claim without any effort? What can I do to make things easier for them? Also, how do taxes come into effect.
I hope others may find your answers useful as well.
Sallie Mae website about loan discharge.

http://www.salliemae.com/after_graduation/manage_your_loans/borrower_responsibility/understanding/discharge.htm

]]> http://www.iraroth.net/2010/04/what-happens-to-your-debts-checkingsavings-account-stocks-and-iras-when-you-die/feed/ 9 Is it possible to deduct loss from Roth and Traditional IRA accounts? http://www.iraroth.net/2010/03/is-it-possible-to-deduct-loss-from-roth-and-traditional-ira-accounts/ http://www.iraroth.net/2010/03/is-it-possible-to-deduct-loss-from-roth-and-traditional-ira-accounts/#comments Sat, 27 Mar 2010 19:55:34 +0000 admin http://www.iraroth.net/2010/03/can-i-deduct-loss-in-my-iras-roth-traditional/ I have a new retirement plan at the place where I work, therefore I closed my old personal IRA accounts. At that point I had less money in my Roth and Traditional IRA accounts then the amount that I contributed.Is it possible to deduct this loss since the money was transferred to a retirement account?I would really appreciate any help.

]]> http://www.iraroth.net/2010/03/is-it-possible-to-deduct-loss-from-roth-and-traditional-ira-accounts/feed/ 3 IS a Bank CD IRA a good retirement account? Do you know which Banks offer the best rates for Bank IRAs? http://www.iraroth.net/2010/01/is-a-bank-cd-ira-a-good-retirement-account-do-you-know-which-banks-offer-the-best-rates-for-bank-iras/ http://www.iraroth.net/2010/01/is-a-bank-cd-ira-a-good-retirement-account-do-you-know-which-banks-offer-the-best-rates-for-bank-iras/#comments Sat, 30 Jan 2010 15:29:18 +0000 admin http://www.iraroth.net/2010/01/is-a-bank-cd-ira-a-good-retirement-account-do-you-know-which-banks-offer-the-best-rates-for-bank-iras/ I am looking into investing in a second IRA, a CD Bank IRA, my question is this a good investment, will I make good returns from this, I dont think the rates are good for Bank IRAs but I can be sure I wont lose any money.
Note: I already have another retirement account through my employer.

]]> http://www.iraroth.net/2010/01/is-a-bank-cd-ira-a-good-retirement-account-do-you-know-which-banks-offer-the-best-rates-for-bank-iras/feed/ 3 Can I have multiple account of IRA roth with different institution? http://www.iraroth.net/2009/12/can-i-have-multiple-account-of-ira-roth-with-different-institution/ http://www.iraroth.net/2009/12/can-i-have-multiple-account-of-ira-roth-with-different-institution/#comments Tue, 08 Dec 2009 02:38:49 +0000 admin http://www.iraroth.net/2009/12/can-i-have-multiple-account-of-ira-roth-with-different-institution/ Can I have multiple account of IRA roth with different institutions – actively contributing? what about is I stop contributing on the 1st account and open another account ?

]]> http://www.iraroth.net/2009/12/can-i-have-multiple-account-of-ira-roth-with-different-institution/feed/ 6 What is the difference between a roth IRA and a normal investment account by a broker? http://www.iraroth.net/2009/12/what-is-the-difference-between-a-roth-ira-and-a-normal-investment-account-by-a-broker/ http://www.iraroth.net/2009/12/what-is-the-difference-between-a-roth-ira-and-a-normal-investment-account-by-a-broker/#comments Fri, 04 Dec 2009 03:18:18 +0000 admin http://www.iraroth.net/2009/12/what-is-the-difference-between-a-roth-ira-and-a-normal-investment-account-by-a-broker/ 1. In both cases I can invest only after tax money.
2. I can withdraw my money whenever I want in both cases.
3. I can only contribute $5,000 per year in the roth IRA while I can contribute how much I want with a normal investment account.

So why would I choose to open a roth IRA instead of a normal investment account where I can invest how much I want?

]]> http://www.iraroth.net/2009/12/what-is-the-difference-between-a-roth-ira-and-a-normal-investment-account-by-a-broker/feed/ 2