Author Topic: Help with online Traditional IRA account  (Read 2286 times)

Offline ShimshonK

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Re: Help with online Traditional IRA account
« Reply #45 on: March 09, 2021, 11:03:48 PM »
I think he was referring to your #2
Oh ok. I guess that was to point out an additional tax benefit, a level beyond what I explained. Fair enough.

Offline Fish Tank

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Re: Help with online Traditional IRA account
« Reply #46 on: March 31, 2021, 11:28:56 PM »
I posted in the tax thread regarding MAGI, and someone replied that only a traditional IRA will lower MAGI, not a roth IRA.

Will a backdoor Roth IRA lower my MAGI since I'm initially putting it into a TIRA, or it won't since I'm not actually taking the tax benefit?

If this isn't the correct thread for this question, please let me know.

Online Kobe Bryant

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Re: Help with online Traditional IRA account
« Reply #47 on: March 31, 2021, 11:48:02 PM »
I posted in the tax thread regarding MAGI, and someone replied that only a traditional IRA will lower MAGI, not a roth IRA.

Will a backdoor Roth IRA lower my MAGI since I'm initially putting it into a TIRA, or it won't since I'm not actually taking the tax benefit?

If this isn't the correct thread for this question, please let me know.
If Iím understanding you correctly. Whatever amount you are converting would affect your AGI but not MAGI.

Offline buchir

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Re: Help with online Traditional IRA account
« Reply #48 on: April 01, 2021, 01:02:27 AM »
I posted in the tax thread regarding MAGI, and someone replied that only a traditional IRA will lower MAGI, not a roth IRA.

Will a backdoor Roth IRA lower my MAGI since I'm initially putting it into a TIRA, or it won't since I'm not actually taking the tax benefit?

If this isn't the correct thread for this question, please let me know.

See step 2.

https://www.investopedia.com/ask/answers/042214/how-can-i-fund-roth-ira-if-my-income-too-high-make-direct-contributions.asp#the-backdoor-roth-ira-strategy


Offline Fish Tank

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Online Kobe Bryant

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Re: Help with online Traditional IRA account
« Reply #50 on: April 01, 2021, 12:49:58 PM »
Thank you !

So basically it won't work for what I'm trying to accomplish. 

Appreciate it.
See this thread for all RF and tax advantaged accounts

Offline buchir

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Re: Help with online Traditional IRA account
« Reply #51 on: April 01, 2021, 06:58:39 PM »
Thank you !

So basically it won't work for what I'm trying to accomplish. 

Appreciate it.

What are you trying to accomplish?

Offline Fish Tank

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Re: Help with online Traditional IRA account
« Reply #52 on: April 05, 2021, 03:07:15 AM »
What are you trying to accomplish?
I'm trying to lower my MAGI to meet the guidelines for Medicaid eligibility.

Offline buchir

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Re: Help with online Traditional IRA account
« Reply #53 on: April 06, 2021, 06:59:43 PM »
I'm trying to lower my MAGI to meet the guidelines for Medicaid eligibility.
So why would you open a backdoor IRA? Am I missing something

Offline free123cc

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Re: Help with online Traditional IRA account
« Reply #54 on: April 06, 2021, 11:04:46 PM »
Have a few quick questions about a ROTH IRA. Not traditional. If me and my wife both earned money this year, can I open up 2 Roth accounts and put 6k in each account for a total of 12k, or is it limited to family/couple?

2nd of all - Iím not sure how I want to invest the money. Can I transfer the money now to the Roth account, and decide in which stock/mutual fund/etf I wanna invest at a later date (after may 17 this year) meaning as long as the money is in the brokerage account before the tax deadline but not invested is that ok to qualify for the 2020 tax year?

Third of all - can I take out my contributions tax free and penalty free AT ANY TIME??

thanks

Offline bubkiz

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Re: Help with online Traditional IRA account
« Reply #55 on: April 06, 2021, 11:10:30 PM »
Have a few quick questions about a ROTH IRA. Not traditional. If me and my wife both earned money this year, can I open up 2 Roth accounts and put 6k in each account for a total of 12k, or is it limited to family/couple?
Its 6K per person.

2nd of all - Iím not sure how I want to invest the money. Can I transfer the money now to the Roth account, and decide in which stock/mutual fund/etf I wanna invest at a later date (after may 17 this year) meaning as long as the money is in the brokerage account before the tax deadline but not invested is that ok to qualify for the 2020 tax year?
Correct. Once its in the Roth you may invest it whenever you wish.

Third of all - can I take out my contributions tax free and penalty free AT ANY TIME??
In general, you can withdraw your Roth IRA contributions at any time. But you can only pull the earnings out of a Roth IRA after age 59 1/2 and after owning the account for at least five years. Withdrawing that money earlier can trigger taxes and an 10% early withdrawal penalty. However, there are several exceptions :
You're withdrawing up to $10,000 to buy your first home.

You're withdrawing up to $5,000 in the year after the birth or adoption of your child.

The withdrawal is for qualified education expenses.

The withdrawal is for unreimbursed medical expenses in excess of 7.5% of your adjusted gross income for the year.

The withdrawal is for health insurance premiums while you're unemployed.

The withdrawal is due to disability.

The withdrawal is made to a beneficiary or your estate after your death.

You decide to take substantially equal payments, which basically locks you into taking at least one distribution per year for at least five years or until you turn 59Ĺ, whichever comes last.

The withdrawal is due to an IRS levy.


thanks

Offline free123cc

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Re: Help with online Traditional IRA account
« Reply #56 on: April 07, 2021, 12:28:29 AM »
thanks @bubkiz

does anyone know of a good brokerage to use for a Roth IRA? preferably free. was reading reviews online but would wanna hear personally from others that have one

thanks

Offline ushdadude

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Re: Help with online Traditional IRA account
« Reply #57 on: April 07, 2021, 12:34:26 AM »
thanks @bubkiz

does anyone know of a good brokerage to use for a Roth IRA? preferably free. was reading reviews online but would wanna hear personally from others that have one

thanks
Vanguard
Trolls will always post stupid replies

Online ExGingi

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Re: Help with online Traditional IRA account
« Reply #58 on: April 07, 2021, 12:54:17 AM »
thanks @bubkiz

does anyone know of a good brokerage to use for a Roth IRA? preferably free. was reading reviews online but would wanna hear personally from others that have one

thanks

It depends on your preference. I have them with Fidelity, Schwab and TDAmeritrade (which was acquired by Schwab but for now still separate).

Each has its strengths and weaknesses. It also depends on what instruments you want to invest or trade. As well as your liking of the interface and tools.
I've been waiting over 5 years with bated breath for someone to say that!
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Online Kobe Bryant

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Re: Help with online Traditional IRA account
« Reply #59 on: April 07, 2021, 01:30:42 PM »

This is incorrect. With RIRA one can withdraw the contributions at any time, for any reason, with no tax or penalties.