Oct 16

Question by phxsunsfanaz: What do you do when you make Roth IRA contributions for a year in which your annual income exceeds the limits?
Let’s say a couple made Roth IRA contributions for 2005 in Feb 2005. In 2006, they realized that their 2005 income was much higher than they originally expected and exceeded the $ 160K limit for couples. What are the options available now to undo it?

Best answer:

Answer by ThaneTheBrain
You better talk to a tax person. If you’ve filed already, and took the deduction, then you’ll have to amend. But if you went to file and realized your mistake, they can help you back out your money.

What do you think? Answer below!


Mar 25

Question by Mike201JC: Does transferring a Roth IRA to another institution impact the five year rule for qualified distributions?
If I transfer a Roth IRA from one financial institution to another, will the five year waiting period for tax-free qualified distributions be impacted, or will it still be calculated from the date I first contributed to the IRA at the original institution?

Best answer:

Answer by Bash Limpbutt’s Oozing Cyst©
No, rollovers between like type accounts (i.e. Roth to Roth) do not affect the calendar at all.

Add your own answer in the comments!


Mar 1

Question by ResearchGirl: I moved my Roth IRA to a different institution. How does that affect the 5 year rule for withdrawals?
I’ve had an Roth IRA for 9 years, but recently moved it to a new institution. If I want to take money out of my contributions, how is the account affected by the 5-year rule? Does this account have to be open for 5 years at the new institution before I can withdraw?

Best answer:

Answer by tro
you have fulfilled the 5 yr rule no matter where it was deposited

Give your answer to this question below!


Apr 20

My consulting business did well enough this year that I had a bit of money due to the IRS. I planned on setting up an IRA this year since I’m in my mid-twenties. I like the tax-free potential of the Roth, but I also need to lower my AGI this year. Would it make sense to open and contribute a portion of my wages to a traditional account and deduct what I need to break even on taxes, and throw the rest into a Roth account? Not exceeding the $4,000 limit on contributions of course… The fees on the accounts should be negligable, considering that I’m working primarily with an Internet broker.
25% is my current tax bracket.


Feb 13

I have already contributed $4,000 to my Roth IRA at Vanguard for 2006. I was on the site to make a $1,000 contribution to my Traditional IRA, and the site said I’ve already made my maximum allowed contributions. I haven’t contributed anything to my Traditional Roth this year.

I was under the impression I could contribute $4k each to a Roth and a Traditional IRA each year. Am I wrong?

A second question. I still have a 401K with a former employer. Can I contribute money into that still?


Feb 9

I’ve been searching online and it seems that the rule only applies to Roth IRAs or when you convert a Traditional IRA into a Roth IRA. Is there a holding period for Traditional IRAs?


Feb 8

Right now we each have 50 bucks a month put in to the Growth fund of america and the Capital World Growth and Income Fund…. wise allocation? or should we be doing something else


Jan 29

Jan 23

I currently have a deductible IRA.


Jan 12

How much should a person make before starting to think about investing in a Roth account?


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