Sep 23

Question by Set: Where is the best place to put Roth IRA money with objective of preserving capital?
Regarding a Roth IRA investment; does buying a Tax Exempt Bond make sense over a Taxable Bond Fund? At this time, which is better; Short, Long, or Intermediate Term? Do you have any specific recommendations within the Vanguard family of funds? Right now everything is in a money market fund. Thanks in advance.

Best answer:

Answer by richard t
the roth is tax free.you pay going in..no tax coming out……………..tax exempt is not for you…………you do not say what your time horizon is………………preservation of capital…the safe way is treasury bills, bonds and notes……………don’t buy anything with more than a 2year maturity and buy some every couple of months to hit the average………….If you have a lot of time till retirement. you might want to risk a bit more,,pick up ”the little book that beats the market’…..it sets you thinking…………..
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Apr 10

Question by Thomas D: How do I invest my money in a Roth IRA?
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.

Best answer:

Answer by brad
I had opened an ira a few years back through my local brokerage. An ira is good for gains made and not paying the regular taxes on them. good for someone looking to retire with a nestegg. If you need access to the cash or may change your mind within a few years? Don’t get one. if you take out too soon under the rules, you will be charged the taxes. I’m not sure if 17 would be eligible either?

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Mar 13

Question by ScubaS: What happens to a Roth IRA when you make too much money?
I understand the difference between a Roth and Traditional IRA, but I haven’t found any information on this technicality.

Let’s say I open a Roth IRA because I don’t have enough income to make me exempt. Then I start making more money and open a Traditional IRA. What happens to the money in the Roth IRA? Can I keep investing with it capital gains tax free, or does it roll into the Trad IRA? What are the tax consequences?

Thanks for your help.

Best answer:

Answer by v b
Nothingyou say makes any sense.

If you have less than $ 5000 of income, yeah, it would better to put the income into a Roth than a traditional IRA because a deduction would be worthless to you.

If in a following year you have, say, $ 20,000 of income, then yes you can ALSO open a tradtional IRA, put the money in there and take a deduction.

The issue is that you have 2 accounts. The $ 5000 you put in can go into 1, the other, or any combination as long as the total is not more than $ 5000.

The Roth continues, you hope to grow. (By the way, IRAs of all flavors do not have ‘captial gains’–if they are taxed, it’s ordinary.)

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Mar 7

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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Mar 5

Question by rdimonte: When I withdraw money from my Roth IRA, do I have to deduct Federal or State taxes?
I rolled over a rollover IRA into a Roth, which is now called a Roth IRA. When filing tax return, I had to pay Federal taxes on the whole amount that was rolled over. When I withdraw from my Roth IRA in the future, do I deduct Federal & State taxes from the amount that I am withdrawing, & if so, what percentage do I use. Will I get taxed on the amount of money that I withdraw, when I file next year’s taxes?

Best answer:

Answer by singlegal
The year in which you transfer/roll the IRA into a Roth IRA is the year you pay state and federal taxes. Once the $ is in the Roth you never pay state or federal taxes on that money again no matter how much it grows………….. hmmmm…. unless the govt. changes the rules down the road…. but for now…. No. You don’t pay again no matter how much the money “grows.”

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Feb 23

Question by Green12345: How can I start a Roth IRA with my money?
I want to open a Roth IRA with a check I received as gift. However, it is greater than my annual income.

I know that money contributed to a Roth IRA must be taxable income. Is there a legal way around this?

Best answer:

Answer by The Son of Rage and Love
No there isn’t a “way around it” – sheeez, it seems like all I see on Yahoo Answers are people looking for some way to beat or scam the system. There are limits on how much you can put annually into a Roth or any IRA for that matter. No mutual fund company or bank will take more than that limit.

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Feb 22

Question by qaperson6859: What exactly is a Roth IRA and should I start putting money in it? Im 22?
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?

Best answer:

Answer by golferwhoworks
smart investor. always start young as you can. ROTH is after tax $ $ $ that earn what ever they are placed in. diversify the portfolio into growth, growth and income and some over seas stuff. you can put in as much as you wish per month and some will be tax deducible come irs time every year even if you over fund.

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Jul 30

I am currently contributing to my 401k plan at my present job. I don’t like the choices they give me and the brokerage plan charges $18 per trade and $100 a year maintenance fee. Can I continue to fund the 401k plan and transfer the moneys to a Roth IRA or similar plan at another brokerage?


Apr 19

I’ve just graduated college and started my first full-time job a couple months ago. Lately I’ve been reading articles about Roth IRA’s and how young people should consider them because they can save a huge amount of money by the time they retire with the smallest amount of input (since they’re getting started earlier). I know I’m still young, but I want to set myself up for a comfortable future. I’m making $35k/year salary, but my company does not have a 401K plan (as of yet).

I would like to try putting away $250 a month in order to create a nest egg for when I retire (and maybe allow myself to retire a little earlier?). Is a Roth IRA the way to go, or is there something better I could do with my money to allow it to increase over the years? I don’t know much about this stuff and don’t even know where to start. I do know that IRAs have something to do with investments, which is risky and scares me a little…


Mar 28

Simply Money: Roth IRA and capital gains
Are capital gains shielded in a Roth IRA? If the funds meet with the approval of the IRA custodian, that should work.

Read more on The Cincinnati Enquirer


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