Roth IRA, Traditional IRA, 401K » much 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 Does how much you contribute into a roth IRA, take that much away from your taxible income? http://www.iraroth.net/2011/09/does-how-much-you-contribute-into-a-roth-ira-take-that-much-away-from-your-taxible-income/ http://www.iraroth.net/2011/09/does-how-much-you-contribute-into-a-roth-ira-take-that-much-away-from-your-taxible-income/#comments Mon, 12 Sep 2011 01:43:24 +0000 admin http://www.iraroth.net/2011/09/does-how-much-you-contribute-into-a-roth-ira-take-that-much-away-from-your-taxible-income/ Question by B. Cummings: Does how much you contribute into a roth IRA, take that much away from your taxible income?
For example if I contribute $ 2000 into a roth IRA, and had a taxable income of $ 35,000 would it now be $ 33,000 of taxible income?

Best answer:

Answer by engineer50
No. Roth contributions are made with after-tax dollars. There is no deduction from income.

Give your answer to this question below!

]]> http://www.iraroth.net/2011/09/does-how-much-you-contribute-into-a-roth-ira-take-that-much-away-from-your-taxible-income/feed/ 2 How much I am allowed to contribute to my ROTH IRA as a married couple? http://www.iraroth.net/2011/04/how-much-i-am-allowed-to-contribute-to-my-roth-ira-as-a-married-couple/ http://www.iraroth.net/2011/04/how-much-i-am-allowed-to-contribute-to-my-roth-ira-as-a-married-couple/#comments Mon, 18 Apr 2011 22:25:12 +0000 admin http://www.iraroth.net/2011/04/how-much-i-am-allowed-to-contribute-to-my-roth-ira-as-a-married-couple/ Question by Cindy16: How much I am allowed to contribute to my ROTH IRA as a married couple?
My husband and I currently have one ROTH IRA under my name.
I also have 401k at my job, and he has his 401 at his job.
I am wondering could he also contribute to an ROTH IRA?
If so, what is the limits for him?

Best answer:

Answer by Scout
Depending on your age. If you are over 50, then you can contribute $ 6000 each as long as you have made at least $ 12,0000 in income. If you are under 50, then the max is $ 5,000 each.

Now if you make more than 166,000 as a couple, then those limits are less.

If you do make over $ 166,000 then I would make a trad ira contr and then convert to a roth.

If you do make over $ 166,000 I would always talk with a tax advisor on anything that you do, especially when it comes to roths.

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]]> http://www.iraroth.net/2011/04/how-much-i-am-allowed-to-contribute-to-my-roth-ira-as-a-married-couple/feed/ 1 What happens to a Roth IRA when you make too much money? http://www.iraroth.net/2011/03/what-happens-to-a-roth-ira-when-you-make-too-much-money-2/ http://www.iraroth.net/2011/03/what-happens-to-a-roth-ira-when-you-make-too-much-money-2/#comments Sun, 13 Mar 2011 22:23:10 +0000 admin http://www.iraroth.net/2011/03/what-happens-to-a-roth-ira-when-you-make-too-much-money-2/ 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.)

What do you think? Answer below!

]]> http://www.iraroth.net/2011/03/what-happens-to-a-roth-ira-when-you-make-too-much-money-2/feed/ 3 claimed exempt all of 07, looking at IRAs to reduce tax liability, how much can I do and what makes sense? http://www.iraroth.net/2010/02/claimed-exempt-all-of-07-looking-at-iras-to-reduce-tax-liability-how-much-can-i-do-and-what-makes-sense/ http://www.iraroth.net/2010/02/claimed-exempt-all-of-07-looking-at-iras-to-reduce-tax-liability-how-much-can-i-do-and-what-makes-sense/#comments Mon, 15 Feb 2010 01:23:58 +0000 admin http://www.iraroth.net/2010/02/claimed-exempt-all-of-07-looking-at-iras-to-reduce-tax-liability-how-much-can-i-do-and-what-makes-sense/ bottom line, want to make sure I am not going to owe come april…..have the typical situations, 2 mortgages, not so typical 4 children….
Single income family, about 125K gross annually, 401K participation

]]> http://www.iraroth.net/2010/02/claimed-exempt-all-of-07-looking-at-iras-to-reduce-tax-liability-how-much-can-i-do-and-what-makes-sense/feed/ 4 IRA Deduction-how much if married filing jointly and we both have IRAs in our own name? http://www.iraroth.net/2010/02/ira-deduction-how-much-if-married-filing-jointly-and-we-both-have-iras-in-our-own-name/ http://www.iraroth.net/2010/02/ira-deduction-how-much-if-married-filing-jointly-and-we-both-have-iras-in-our-own-name/#comments Mon, 08 Feb 2010 17:55:30 +0000 admin http://www.iraroth.net/2010/02/ira-deduction-how-much-if-married-filing-jointly-and-we-both-have-iras-in-our-own-name/ Hello. The above says it all. My wife and I are both over 50, and we file married/filing jointly. If we both put $5000 in our IRAs, do we get a $10,000 deduction, or do we max out at $5000?

thanks a bunch…

RVS

]]> http://www.iraroth.net/2010/02/ira-deduction-how-much-if-married-filing-jointly-and-we-both-have-iras-in-our-own-name/feed/ 4 How much can I withdraw from my IRAS without effecting my Social Security? http://www.iraroth.net/2010/01/how-much-can-i-withdraw-from-my-iras-without-effecting-my-social-security/ http://www.iraroth.net/2010/01/how-much-can-i-withdraw-from-my-iras-without-effecting-my-social-security/#comments Fri, 22 Jan 2010 03:12:20 +0000 admin http://www.iraroth.net/2010/01/how-much-can-i-withdraw-from-my-iras-without-effecting-my-social-security/ I will be collecting social security in a few years. How much can I take from my IRAS without effecting my social security?

Thanks.

]]> http://www.iraroth.net/2010/01/how-much-can-i-withdraw-from-my-iras-without-effecting-my-social-security/feed/ 5 How much is your 401K taxed when you liquidate it? http://www.iraroth.net/2009/12/how-much-is-your-401k-taxed-when-you-liquidate-it/ http://www.iraroth.net/2009/12/how-much-is-your-401k-taxed-when-you-liquidate-it/#comments Thu, 17 Dec 2009 14:13:37 +0000 admin http://www.iraroth.net/2009/12/how-much-is-your-401k-taxed-when-you-liquidate-it/ I am leaving a company and have $4,988.00 in my 401K and would like to cash it out.

]]> http://www.iraroth.net/2009/12/how-much-is-your-401k-taxed-when-you-liquidate-it/feed/ 5 What happens to a Roth IRA when you make too much money? http://www.iraroth.net/2009/12/what-happens-to-a-roth-ira-when-you-make-too-much-money/ http://www.iraroth.net/2009/12/what-happens-to-a-roth-ira-when-you-make-too-much-money/#comments Wed, 09 Dec 2009 12:17:29 +0000 admin http://www.iraroth.net/2009/12/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.

]]> http://www.iraroth.net/2009/12/what-happens-to-a-roth-ira-when-you-make-too-much-money/feed/ 4 Convert from Rollover to Roth IRA? How much taxes do I have to pay? http://www.iraroth.net/2009/12/convert-from-rollover-to-roth-ira-how-much-taxes-do-i-have-to-pay/ http://www.iraroth.net/2009/12/convert-from-rollover-to-roth-ira-how-much-taxes-do-i-have-to-pay/#comments Wed, 09 Dec 2009 12:14:37 +0000 admin http://www.iraroth.net/2009/12/convert-from-rollover-to-roth-ira-how-much-taxes-do-i-have-to-pay/ I currently have 2k in a rollover IRA, & have read its best to have a Roth. If I convert, how much do I have to pay in taxes next year? Should I pay it out of pocket or out of the Rollover IRA?
Some facts: 23 yrs old, will contribute $600 to the IRA this year & my AGI is around $32k (I know the amounts are small, but I’m doing the best I can!)

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