Author Topic: Help with online Traditional IRA account  (Read 2285 times)

Offline ushdadude

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Re: Help with online Traditional IRA account
« Reply #30 on: March 08, 2021, 01:55:35 PM »
-10000

principles are the same. you need to adjust for whats necessary for your personal life. but overall i found that principles can be applied everywhere the same


Right. I meant more in terms of specific scenarios and advice
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Offline ushdadude

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Re: Help with online Traditional IRA account
« Reply #31 on: March 08, 2021, 03:07:27 PM »
Feel free to discuss here


wow...that's a very emotionally charged thread...but some good info mixed in

#DDFduringCovid
« Last Edit: March 08, 2021, 03:26:43 PM by ushdadude »
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Online Kobe Bryant

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Re: Help with online Traditional IRA account
« Reply #32 on: March 08, 2021, 04:24:29 PM »

wow...that's a very emotionally charged thread...but some good info mixed in

#DDFduringCovid
It is?

Offline Essen est zich

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Re: Help with online Traditional IRA account
« Reply #33 on: March 08, 2021, 06:36:12 PM »
This past weeks coach meanchem topic was about finance.

Offline ushdadude

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Re: Help with online Traditional IRA account
« Reply #34 on: March 08, 2021, 06:47:53 PM »
It is?


People taking things personally instead of separating themselves from their views
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Offline miles lover

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Re: Help with online Traditional IRA account
« Reply #35 on: March 08, 2021, 09:37:41 PM »
If someone only made unemployment income, can he contribute those funds to a Roth IRA ?
 Secondly, is there an official verification of income when you fund a Roth IRA ?

Online ExGingi

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Re: Help with online Traditional IRA account
« Reply #36 on: March 08, 2021, 09:54:12 PM »
If someone only made unemployment income, can he contribute those funds to a Roth IRA ?
 Secondly, is there an official verification of income when you fund a Roth IRA ?
No. The taxpayer (or spouse) must have earned income equal or exceeding the amount of the IRA contribution.
No. (If I understood your 2nd question correctly)
I've been waiting over 5 years with bated breath for someone to say that!
-- Dan

Offline miles lover

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Re: Help with online Traditional IRA account
« Reply #37 on: March 08, 2021, 10:02:06 PM »
No. The taxpayer (or spouse) must have earned income equal or exceeding the amount of the IRA contribution.
No. (If I understood your 2nd question correctly)
Thanx
Was asking if the brokerage will make you show proof of earned income.
 You need to put contributions to a Roth IRA on your taxes, correct ?

Offline Yo ssi

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Re: Help with online Traditional IRA account
« Reply #38 on: March 09, 2021, 01:48:07 AM »
No. The taxpayer (or spouse) must have earned income equal or exceeding the amount of the IRA contribution.
Can I ask for a source?

Offline ShimshonK

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Re: Help with online Traditional IRA account
« Reply #39 on: March 09, 2021, 02:21:21 AM »
isnt that rule the same for any stocks or etf's?
if i reinvest all dividends i dont pay taxes until i retire no?
and if im wrong, how would i go about investing in the vangaurd etf im already investing in, thru the ira method?
#1- Dividends are a taxable event, so you do owe tax on that immediately, even if you reinvest it (and if you do, your tax basis would then increase). Non dividend growth is only considered a taxable event when you sell the stock and realize the gains.
#2- What the previous poster was saying about not paying tax on an IRA until retirement refers to the income tax on the money in which you fund the IRA. In a regular brokerage account, you'll be using post-tax money, so you were already charged income tax on it, whereas an IRA defers the income tax.
#3- If you are currently in a low tax bracket, I'd recommend you open a Roth IRA rather than a traditional IRA. A Roth IRA allows you to put in post-tax money (just like a regular brokerage account), but you will then be able to cash out all gains in retirement entirely tax free. It also offers added flexibility, in that you can withdraw contributions (as opposed to the earnings) at any time penalty free.
#4- You're not going to be able to gather enough knowledge on these topics via asking a few questions on DDF. It's a great start, but there are a wealth of resources online (e.g. Google, YouTube, Investopedia, Bogelhead, Reddit) which can take your knowledge miles further if you are interested in learning more.

Offline aygart

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Re: Help with online Traditional IRA account
« Reply #40 on: March 09, 2021, 09:25:39 AM »
#1- Dividends are a taxable event, so you do owe tax on that immediately, even if you reinvest it (and if you do, your tax basis would then increase). Non dividend growth is only considered a taxable event when you sell the stock and realize the gains.
#2- What the previous poster was saying about not paying tax on an IRA until retirement refers to the income tax on the money in which you fund the IRA. In a regular brokerage account, you'll be using post-tax money, so you were already charged income tax on it, whereas an IRA defers the income tax.
#3- If you are currently in a low tax bracket, I'd recommend you open a Roth IRA rather than a traditional IRA. A Roth IRA allows you to put in post-tax money (just like a regular brokerage account), but you will then be able to cash out all gains in retirement entirely tax free. It also offers added flexibility, in that you can withdraw contributions (as opposed to the earnings) at any time penalty free.
#4- You're not going to be able to gather enough knowledge on these topics via asking a few questions on DDF. It's a great start, but there are a wealth of resources online (e.g. Google, YouTube, Investopedia, Bogelhead, Reddit) which can take your knowledge miles further if you are interested in learning more.
You do not pay taxes on dividends or gains inside an IRA. You do pay tax on the entire amount once you withdraw as ordinary income.
Feelings don't care about your facts

Offline ushdadude

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Re: Help with online Traditional IRA account
« Reply #41 on: March 09, 2021, 10:17:59 AM »
I want to do a backdoor ROTH IRA conversion but have money in a SEP and traditional IRA already. I know you can move that money into a 401k to avoid pro rata rules. Can I create a new business entity so I can open a solo 401k?
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Offline ShimshonK

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Re: Help with online Traditional IRA account
« Reply #42 on: March 09, 2021, 10:57:10 AM »
You do not pay taxes on dividends or gains inside an IRA. You do pay tax on the entire amount once you withdraw as ordinary income.
Correct, but the comment I responded to was specifically referring to non-IRA brokerage accounts.

Offline zh cohen

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Re: Help with online Traditional IRA account
« Reply #43 on: March 09, 2021, 09:12:39 PM »
Correct, but the comment I responded to was specifically referring to non-IRA brokerage accounts.

I think he was referring to your #2

Online yos9694

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Re: Help with online Traditional IRA account
« Reply #44 on: March 09, 2021, 09:36:08 PM »
Everything I read about personal finances needs major tweaking to make it relevant to a frum family. (EG send to public school instead of private school is not usually an optionand not everyone will move to CLE)


Maybe it's time to open a new forum (or thread). "The Frum Family Forum for Financial Freedom"

Step 1: Earn much more than if you weren't a frum family

Step 2: Now you can follow the typical personal finance advice