I have Roth IRA CD’s at a bank earning an attractive 5 year rate with a one time no bank penalty withdrawal clause. I opened these accounts in ‘06 & ‘07 by transferring and rolling over Roth IRA accounts from other banks originally opened over 5 years.
My understanding is I will not have to pay tax on withdrawn Roth IRA gains provided the withdrawal is done 5 or more years after opening. My question is, if I withdraw now will my gains be taxable based on the date of the current Roth accounts or not based on the original date of the Roth accounts?
I am 60 years old and have $30,000 in an IRA CD which will mature in August 2010. At that time, I am thinking about converting it to a ROTH IRA CD and paying the taxes on the $30,000 (it’s all pre-tax money). If I convert it to a ROTH, will I have to wait five years before I can withdraw any money from it? I’m talking about principal, not any subsequent earnings.
I contributed $5,000 to my roth IRA in 2008. How do I declare this when filing taxes? My company has not provided any 1099 or other document, are they supposed to? I plan to file my taxes using Turbo Tax, how/where should I declare the contribution?
Awesome, thanks for the answers. I knew it wasn’t tax deductible, I just thought I had to declare the contribution as income. Thanks all for the clarification.
I converted a Traditional IRA to a Roth IRA. The federal taxes were withheld – all is well with that (I think). The state taxes were not withheld. Now I owe the state a bunch of money. Can I take the owed amount (or less) from the Roth IRA to pay the taxes due without incurring penalties, etc? Would this be considered a “premature withdrawal”?
Understand estate taxes, Roth IRA conversions
Recently I have been asked a number of questions regarding changes in the tax laws for 2010. The questions have dealt with two issues — changes in rules with regards to estate taxes and changes with regards to Roth IRA conversions.
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I am retired and want to change my ira to a roth ira so I don’t have to worry about future taxes from the roth ira.
what are the rules of the roth ira?
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!)
In order to avoid bankruptcy, during a 9 month period of unemployment, It was necessary to take early distribution monthly from 401K for income. Are there any hardship provisions for this type of “forced” early distribution?
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?
I have a traditional IRA which contains TIPS (treasury inflated protected securities). How do I calculate taxes when converting the IRA to a Roth IRA?
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