Question by brewbeer212: What is the difference between a Roth IRA/IRA and mutual funds?
Isn’t an IRA or Roth IRA just a bunch of mutual funds or should I go to Investing 101?
Thanks.

Best answer:

Answer by KC
Go to investing 101. It will explain this and a lot more. You need to understand some of these basics so you don’t toss and turn in your sleep worried about your retirement.

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Question by va_girl: What are the differences between a money market IRA and a roth IRA?
I opened a money markey IRA, and was going to converit it to a Roth IRA (im 23) and have rolled my $ 3,500 from my 401K into my new IRA. When will I have to pay taxes on my $ 3,500 and when will I pay taxes on my new contributions? Im not sure if I should keep the money market, or change to the Roth. Thanks!

Best answer:

Answer by wartz
Sounds like a brand name. You can have a money market fund in any kind of IRA. In a Roth IRA you can not deduct the money you put in but the income and capital gains can be taken out tax free.

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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

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Question by JE: What is the difference between a Roth IRA and a Roth IRA term cd?
What is the difference between a Roth IRA and a Roth IRA term cd? Does the Roth Cd act like a regular cd but with tax free interest? When the Roth CD term is up, do I have to roll it over into another Roth Ira cd? If I end the Roth Cd at the end of the term, is there a penalty?

Best answer:

Answer by storeonwheels
Let me explain. You can take the money out of the Roth IRA account at anytime, but you may need to place the money back into the account or you will be taxed. A Roth IRA is a retirement account which requires $ 2500.00 and may be withdrawn when you are 59 1/2. You will not be taxed as long as you take this money out after your 59 1/2. Take the money out before 59 1/2 and you may be taxed. A Roth IRA CD has a higher interest rate than the Roth savings account. Keep your money in here and you can earn more money. The roth IRA accounts(savings and CD) are designed to be withdrawn after your 59 1/2. Please don’t put your money here unless you want to save it for your retirement. Join my storeonwheels group in yahoo groups when you have money or business questions.

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When looking at my 401k statement, there is an “Earnings” section and a “Appreciation/Depreciation” section. What is the difference?

Just want to know incase i get a job

Hi. I’ve read a number of bank sights about their retirement packages. However, are there any unbiased resources out there that explain what a traditional IRA offers and what a Roth IRA offers? Any websites out there? Any pointers?

I notice from some investment company they offer IRA (that puts money in 2040, 2035, 50/50 or something like that) and IRA CD.

Those numbered IRA are not FDIC insured but the IRA CD is.
What’s the different? If the IRA CD is insursed. It sounds awesome, how come it seems like less people go with that?

thank you
By any chance if anyone know IRA CDs out performed by how much?
Is it worth the risk?
And how high is the interest right now for IRA CDs?

Is it possible to take a loan from your 401k with out having to pay taxes on it till 2010 taxes.

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