Starting an IRA/Roth IRA

[Marco Polo]

Looking to start one up, any ideas or insight i should know?

[shmiel1429]

How much money can u put in each year?

Can u redeem it earlier if needed?

[Lou Bob]

How much money can u put in each year?

Can u redeem it earlier if needed?

giyf- I promise you. I just tried it, and found useful info

[Marco Polo]

How much money can u put in each year?

Can u redeem it earlier if needed?

Probably 5-10k  a year.
I hope to be able to keep it in till i retire (24 now).

[Marco Polo]

giyf- I promise you. I just tried it, and found useful info

Any particular site which you found more useful?
I want to understand as if i know nothing.

[churnbabychurn]

Any particular site which you found more useful?
I want to understand as if i know nothing.

http://www.investopedia.com/university/retirementplans/ira/

[noturbizniss]

Pretty sure 4-5k per year is the max individual contribution.  What you need to think about is if you will be in a higher tax bracket now or when you retire. Usually you assume now, but given your age and your potential for advancement you may be in a higher bracket when you retire. Basically you want to maximize your tax savings. If your in a higher bracket now then put it into a regular IRA as you pay no taxes now and pay when you withdraw. If your in low bracket now then you'll pay less in taxes now if you do a roth IRA, and you'll pay no taxes when you retire.
The other consideration is that 5K a year X 40 years is a lot of interest. Even at 2% (which you can't get in savings, but you should easily get on some conservative funds) would double the 5K to over 11K, and then a roth IRA would be taxed 5K now when you deposit and  totally tax free at withdrawal, whereas a standard would be 5K tax deduction now but 11K+ fully taxed at retirement. Personally I do a mixture of both.

Also, this is probably better suited to the credit card board.

Talk about credit cards or bank accounts including churning, rebates, and mileage earning via credit cards, or any other financial topics.

[Marco Polo]

Thanks for all the info.

Mods: If you can switch this to the CC thread, would be appreciated.

[churnbabychurn]

Must mention the ten percent penalty by IRS for early disbursement, before 59.5.
unless...

[noturbizniss]

Must mention the ten percent penalty by IRS for early disbursement, before 59.5.
unless...

You can take loan for first time home purchase. I don't remember how much or how long go pay back

[churnbabychurn]

You can take loan for first time home purchase. I don't remember how much or how long go pay back

Or This

[Bostener]

How much money can u put in each year?

Can u redeem it earlier if needed?

For 2012, the most that can be contributed to your traditional IRA generally is the smaller of the following amounts:
•   $5,000 ($6,000 if you are age 50 or older), or
•   Your taxable compensation for the year.

[Bostener]

Looking to start one up, any ideas or insight i should know?

IRA is tax deductible now but when you take out the money its taxable.

Roth IRA is not tax deductible the year you put in the money, however, the interest is tax free and when you take out the money you won’t pay any taxes.

[Steven]

You can take loan for first time home purchase. I don't remember how much or how long go pay back

so my parents set up both an ira and roth ira for me. I have under 10k between both accounts. I'm In the process of buying a house and could use the money. I'm hoping to be in a higher tax bracket when i retire than what I am in now. Does it makes sense to take our the money? My under standing is that I will still have to pay taxes on it but I don't pay a penalty for early withdrawal.. any advice would be appreciated. My accountant and broker both don't know anything about this

[Marco Polo]

so my parents set up both an ira and roth ira for me. I have under 10k between both accounts. I'm In the process of buying a house and could use the money. I'm hoping to be in a higher tax bracket when i retire than what I am in now. Does it makes sense to take our the money? My under standing is that I will still have to pay taxes on it but I don't pay a penalty for early withdrawal.. any advice would be appreciated. My accountant and broker both don't know anything about this

Time for new representation?

[LA2NYC]

2013 limit is $5500 total for IRA contributions, divvied up however you want between Roth or Traditional.

For high earners, you may be maxed out of Roth IRA.  If so, google back-door Roth IRA conversion.

[churnbabychurn]

so my parents set up both an ira and roth ira for me. I have under 10k between both accounts. I'm In the process of buying a house and could use the money. I'm hoping to be in a higher tax bracket when i retire than what I am in now. Does it makes sense to take our the money? My under standing is that I will still have to pay taxes on it but I don't pay a penalty for early withdrawal.. any advice would be appreciated. My accountant and broker both don't know anything about this

Roth should be tax free now.
If you're going to be in a higher bracket at retirement then there is no reason to have a traditional IRA anyway.
You should be able to use ~10k for a new first home penalty free.
(MHO)

[Steven]

Roth should be tax free now.
If you're going to be in a higher bracket at retirement then there is no reason to have a traditional IRA anyway.
You should be able to use ~10k for a new first home penalty free.
(MHO)

Thanks everYone. It's great having my ddf fam to bounce all my qs off. . Who needs accountants and brokers when you got ddf:))