Question by The Fervor King: Should I close my Roth IRA and will I face a penalty?
My wife’s parents opened a Roth IRA for her prior to us getting married. It has been opened around six months now. We are considering closing it to pay off her credit card and getting entirely debt free. Is there any sort of exception to the additional taxing on nonqualified disbursements that would apply to this situation? We have other investments in place, and this Roth IRA is really unnecessary. Any help would be greatly appreciated. Thanks.

Best answer:

Answer by Steve D
Sorry, but unless you can show hardship, there are no exemptions and you will end up paying the 10% penalty.

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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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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…

Now that we are reaching a critical mass of having a future of more people drawing it than paying in, wouldn’t it be a good way to keep the program from collapsing?
And they could enforce it by charging a huge tax penalty to anyone who opted out and did not invest in their retirement.

My accountant tells me that many years ago this would have been a terrible idea, but that now it doesn’t really matter. I have some Rollover IRAs and Non-Rollover IRAs that I want to consolidate to help manage my investment strategies. Upon consolidation, they will all become Non-Rollover IRAs, and apparently the only downside is that they will need to be tracked separately if I ever roll the funds over into another employer sponsored plan.

Are there any other disadvantages? I really like the simplification of getting everything onto one account. Should I go ahead and do this?

Thanks.
Thanks for the link, but I don’t understand the “seer or an oracle” comment…

Does this even matter? All the money was hard earned, would they think nothing of it as I could have gotten it from my parents/they did it for me?

I don’t think we’ll be able to put the maximum yearly contribution in them or anything like that, but I’m really leaning towards opening Roth IRAs for my husband and I at our local credit union. Is there anything you wish you had considered before opening a retirement account? Would you go with Roth or Traditional?

I have a Rollover IRA that has lost half its value. If I convert it to a Roth IRA, I will pay taxes now, but it will grow tax free from now on. Should I convert it now, or should I let it ride, and pay taxes down the road (25 years)?

I am looking into withdrawing my IRA early, I was told to withhold an amount in order not to be penalized later on by the state and the IRS, what percentage should it be?

I currently have two IRAs, a Rollover IRA worth $7,100 and a Roth IRA worth $1,000. They are both at the same brokerage.

Is it wise for me to convert my Rollover IRA to my current Roth? What kind of penalties and taxes will I have to pay? Is there a better way to minimize taxes? Should I have the tax withheld or should I pay from the taxes/penalty from an outside source rather than from the IRA?

My current gross income is around 45k and in the 25% tax bracket.

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