Roth IRAs

Defying · Aug 3, 2014

I admittedly don't know much about this stuff...

I need to open a ROTH IRA - is it cheaper to do it some places than others? Any advantages to one place or another?

CHOPTALK · Aug 3, 2014

Do you already have a broker?

Defying · Aug 3, 2014

DNoonan · Aug 3, 2014

look at sharebuilder or one of the low cost online providers

Acebb · Aug 3, 2014

Why do you "need" to open a Roth IRA?

Illini · Aug 3, 2014

Do a traditional IRA. There is already legislation to limit withdrawals to a tiny fraction every year so that they can confiscate it in taxes when you die. If that's in place now, think of what it's gonna be like when the unfunded liabilities of 50 trillion in addition to the debt come due.

SECplayer · Aug 3, 2014

Vanguard.

PatsFan1283 · Aug 3, 2014

Defying said:
I admittedly don't know much about this stuff...

I need to open a ROTH IRA - is it cheaper to do it some places than others? Any advantages to one place or another?

Most of the low cost ones are going to be pretty much the same. Use Scotttrade, Sharebuilder and then just index for a little while.

I'd go traditional though as long as you qualify.

CoachCB · Aug 3, 2014

If you're a USAA member, that's a great low-cost brokerage. Fidelity is good as well.

tatehill2000 · Aug 3, 2014

Vanguard is rock dam solid

Jstack34 · Aug 3, 2014

Defying - I don't think you can open a roth. I believe there is a limit of income where you can't make contributions...and we know Mod at TheRX pays at least 150K so I think you are out of luck my friend

Defying · Aug 3, 2014

Jstack34 said:
Defying - I don't think you can open a roth. I believe there is a limit of income where you can't make contributions...and we know Mod at TheRX pays at least 150K so I think you are out of luck my friend

Defying · Aug 3, 2014

did a lot of reading today, got my answer. thanks guys

MikeB · Aug 3, 2014

Defying said:
did a lot of reading today, got my answer. thanks guys

Are you going to fill us in?

Willie99 · Aug 3, 2014

do you expect significant retirement income from other sources?

I'm kinda pressed for time over the next 36 hours, but I'll be happy to have and extended conversation with you in September

tons of variables, lots of give and take

PS: I generally like Roth's too, the younger the better

WharfRat+ · Aug 3, 2014

MikeB said:
Are you going to fill us in?

The answer is vanguard index funds

groundhog11 · Aug 4, 2014

isnt the roth limit to how much you can contribute at 95k of earned income per yr?

SECplayer · Aug 4, 2014

Willie99 said:
do you expect significant retirement income from other sources?

I'm kinda pressed for time over the next 36 hours, but I'll be happy to have and extended conversation with you in September

tons of variables, lots of give and take

PS: I generally like Roth's too, the younger the better

Willie, i noticed that contributions to Roths are pretty much disallowed if you file married filing separately. I contribute funds for my wife to a Roth and we did file married filing separately this last year.

What are the consequences to contributing a technically ineligible amount to a Roth? Honestly had no idea. What are the odds the IRS would ever know? Would it come up way down the road when we are seeking to withdraw?

Jstack34 · Aug 5, 2014

SECplayer said:
Willie, i noticed that contributions to Roths are pretty much disallowed if you file married filing separately. I contribute funds for my wife to a Roth and we did file married filing separately this last year.

What are the consequences to contributing a technically ineligible amount to a Roth? Honestly had no idea. What are the odds the IRS would ever know? Would it come up way down the road when we are seeking to withdraw?

There are penalties that you would pay each year until the $$ is reclassified. If you contributed in 2014 for her - you have until April 15 (or until you file your return if you file an extension) and can recharacterize the contribution to a traditional IRA or a few other options. Any earnings you have on the Roth that is recharacterized will be considered taxable tho.
t
Not sure if the IRS would ever know but i think its easier to just recharacterize. I am 99% sure my post above is correct but I can double check tomorrow at work if needed - Im sure Willie probably knows this as well

Jstack34 · Aug 5, 2014

Jstack34 said:
There are penalties that you would pay each year until the $$ is reclassified. If you contributed in 2014 for her - you have until April 15 (or until you file your return if you file an extension) and can recharacterize the contribution to a traditional IRA or a few other options. Any earnings you have on the Roth that is recharacterized will be considered taxable tho.
t
Not sure if the IRS would ever know but i think its easier to just recharacterize. I am 99% sure my post above is correct but I can double check tomorrow at work if needed - Im sure Willie probably knows this as well

O - I see you did this last year as in 2013 - this site has some info

http://www.obliviousinvestor.com/correcting-an-excess-roth-ira-contribution/

Technically I think you would need to amend 2013 if already filed to report the excess contribution and then recharacterize or withdrawal for 2014. Hope it helps