Roth IRA, Traditional IRA, 401K » work 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 How do Roth IRAs for minors work? http://www.iraroth.net/2010/04/how-do-roth-iras-for-minors-work/ http://www.iraroth.net/2010/04/how-do-roth-iras-for-minors-work/#comments Wed, 21 Apr 2010 16:03:06 +0000 admin http://www.iraroth.net/2010/04/how-do-roth-iras-for-minors-work/ I don’t completely understand exactly how they work at all, to be honest. But my math teacher recently showed us that contributing a couple thousand dollars a year every year for about 10 years at least 40 years before retiring could end up giving you over a million dollars upon retirement. Now, I see it’s not quite so simple. I have several questions….

1) Do taxes play any part in Roth IRAs? Or is it just you deposit, watch it grow by the rate, and then withdraw the exact amount?
2) Can a minor make an account? According to this – http://www.kiplinger.com/columns/drt/archive/2008/dt080130.html, it appears it is possible. However, it also seems that you need an income to put money into it. Would buying/selling misc. things (some virtual goods, others real goods) over the internet qualify as an income that I could cite if putting money into a Roth IRA?
3) How often is the interest compounded? Or does it vary?
4) What’s the rate? Or does it vary?
5) Are you guaranteed anything, or is it possible your money will all disappear?

]]> http://www.iraroth.net/2010/04/how-do-roth-iras-for-minors-work/feed/ 2 How do roth IRAs work? http://www.iraroth.net/2010/02/how-do-roth-iras-work/ http://www.iraroth.net/2010/02/how-do-roth-iras-work/#comments Tue, 16 Feb 2010 04:58:28 +0000 admin http://www.iraroth.net/2010/02/how-do-roth-iras-work/ I’ve been told continuously to start one (i’m eighteen) but I’m not sure where to begin, what happens when I begin, and what happens at the end. Can someone explain it to me in lame mans terms?

]]> http://www.iraroth.net/2010/02/how-do-roth-iras-work/feed/ 6 How do dividens in roth IRAs work? Do they enable you to put more than $4000 in? Is it taxed? http://www.iraroth.net/2010/02/how-do-dividens-in-roth-iras-work-do-they-enable-you-to-put-more-than-4000-in-is-it-taxed/ http://www.iraroth.net/2010/02/how-do-dividens-in-roth-iras-work-do-they-enable-you-to-put-more-than-4000-in-is-it-taxed/#comments Mon, 01 Feb 2010 12:38:42 +0000 admin http://www.iraroth.net/2010/02/how-do-dividens-in-roth-iras-work-do-they-enable-you-to-put-more-than-4000-in-is-it-taxed/ http://www.iraroth.net/2010/02/how-do-dividens-in-roth-iras-work-do-they-enable-you-to-put-more-than-4000-in-is-it-taxed/feed/ 4 How do Roth IRAs work? Do they really double everything every year? http://www.iraroth.net/2010/01/how-do-roth-iras-work-do-they-really-double-everything-every-year/ http://www.iraroth.net/2010/01/how-do-roth-iras-work-do-they-really-double-everything-every-year/#comments Sat, 30 Jan 2010 02:44:16 +0000 admin http://www.iraroth.net/2010/01/how-do-roth-iras-work-do-they-really-double-everything-every-year/ http://www.iraroth.net/2010/01/how-do-roth-iras-work-do-they-really-double-everything-every-year/feed/ 5 Are contributions to 401k prorated from the time you start work? http://www.iraroth.net/2009/12/are-contributions-to-401k-prorated-from-the-time-you-start-work/ http://www.iraroth.net/2009/12/are-contributions-to-401k-prorated-from-the-time-you-start-work/#comments Sat, 05 Dec 2009 22:24:08 +0000 admin http://www.iraroth.net/2009/12/are-contributions-to-401k-prorated-from-the-time-you-start-work/ I have two questions about my employer retirement 401k contributions.
1. The maximum I can put in is $15,500 for 2007. But I started in mid year. Is it prorated from the time I started? Example: I started on July 1, is the contribution $15,500/2 = $7,750.
2. My employer matching is 2:1 up to a maximum of 6% of salary. Example: $50,000 annual salary, employer contribution is $3,000. For every dollar I put in, they will put in $0.50. Is the employer matching of $3,000 included in the $15,500 which means the employee total amount invested is $12,500, or, is it $15,500 from employee plus $3,000 from employer which would equal $18,500. I think it’s the former but just want to check.
Thanks….

]]> http://www.iraroth.net/2009/12/are-contributions-to-401k-prorated-from-the-time-you-start-work/feed/ 3 How can I access my 401K for funds, if fired from work? http://www.iraroth.net/2009/12/how-can-i-access-my-401k-for-funds-if-fired-from-work/ http://www.iraroth.net/2009/12/how-can-i-access-my-401k-for-funds-if-fired-from-work/#comments Thu, 03 Dec 2009 03:17:43 +0000 admin http://www.iraroth.net/2009/12/how-can-i-access-my-401k-for-funds-if-fired-from-work/ ………..

I have money invested in my 401K.

If I get fired from work, what kind of taxes will I owe if I need to access my 401K for funds, while looking for a new job?

Thanks!

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