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peenie

Do you have a Roth IRA?

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Would you please explain the benefits of having one? Is it so that you can reach into without penalty? How is it different than the one where I contribute through my job?

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4 minutes ago, peenie said:

Would you please explain the benefits of having one? Is it so that you can reach into without penalty? How is it different than the one where I contribute through my job?

Your job is probably a traditional 401k, which is funded with PRE tax money.  You pay taxes on it when you withdrawal it, typically at retirement.  A Roth IRA is funded with AFTER tax money and you don't have to pay taxes on it when you withdrawal it.

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I have one.  I was able to dip into it to help purchase our first house.

 

The benefit is that it is post tax contributions.  So if you are assuming you are in a lower tax bracket now, compared to when you retire, your tax hit will be lower.

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How did you find or choose your Roth? I'm thinking of getting one now.

Can I roll money from my regular 401K into the Roth?

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go away. I'd go to a WNBA game before I answered your deleting thread ass seriously

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Just now, edjr said:

go away. I'd go to a WNBA game before I answered your deleting thread ass seriously

Sh*t.  Forgot about that.  I vowed not to respond to her seriously in a thread she creates.  Oh well.  Will try to do better next time.

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@edjr and @Strike

But you are answering my question. If I read it then you've done what this thread was supposed to do, inform me. Once again, if we were in conversation in real life there would be no video tape to review at a later time. Think about why it bothers you so much.

I am going to delete this thread. Will you please answer anyway? Help me learn about Roth IRA.

Don't feel hurt by the deletion. It's like hoarding if you want to keep around.

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2 minutes ago, peenie said:

@edjr and @Strike

But you are answering my question. If I read it then you've done what this thread was supposed to do, inform me. Once again, if we were in conversation in real life there would be no video tape to review at a later time. Think about why it bothers you so much.

I am going to delete this thread. Will you please answer anyway? Help me learn about Roth IRA.

Don't feel hurt by the deletion. It's like hoarding if you want to keep around.

I'm not going through this with  you again.  I just need to remember to NEVER answer a question seriously in a thread you created.  I made that mistake today.  I won't again.

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6 minutes ago, peenie said:

@edjr and @Strike

But you are answering my question. If I read it then you've done what this thread was supposed to do, inform me. Once again, if we were in conversation in real life there would be no video tape to review at a later time. Think about why it bothers you so much.

I am going to delete this thread. Will you please answer anyway? Help me learn about Roth IRA.

Don't feel hurt by the deletion. It's like hoarding if you want to keep around.

🖕🏻

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2 minutes ago, mmmmm...beer said:

You're too old to have it matter now.

Stick to weights meat head. 

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57 minutes ago, bandrus1 said:

you can only cash it out without penalty for very specific events  

What?

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22 minutes ago, Alias Detective said:

What?

There are only specific qualifying events/ circumstances you can cash out a Roth IRA and not be penalized. Such as down payment on first house purchase

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A Roth IRA provides MORE access to one’s money than a traditional IRA. After 5 years one can withdrawal every penny they put in without tax or Penalty for ANY reason. 
 

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8 minutes ago, Alias Detective said:

A Roth IRA provides MORE access to one’s money than a traditional IRA. After 5 years one can withdrawal every penny they put in without tax or Penalty for ANY reason. 
 

I didn't know that. That makes them even more appealing

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Roth is the name of the guy who manages a ton of IRA's and 401k's.  He's got a similar setup to Bernie Madoff.  Look up the Bernie Madoff ponzi scheme and then decide whether you want to give Roth money.

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I have a Roth IRA.  I figured I'd just pay the tax now so when I need the money I get exactly what's in my account.

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2 minutes ago, Hawkeye21 said:

I have a Roth IRA.  I figured I'd just pay the tax now so when I need the money I get exactly what's in my account.

:lol:

You best go back and read up on roth IRA. 

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Peenie I deleted my post since you’ve probably read it by now. I hope you never want to refer back to it or anything, or that some other poster didn’t want to comment on it and maybe correct or clarify something in a useful way. 

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1 minute ago, IGotWorms said:

Peenie I deleted my post since you’ve probably read it by now. I hope you never want to refer back to it or anything, or that some other poster didn’t want to comment on it and maybe correct or clarify something in a useful way. 

:doublethumbsup:

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Peenie, there is no way that you can contribute to a Roth IRA.  You make too much money.  

I have one that has $5k in it from a while back, but I can't put any more in it because it is not allowed.  

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6 minutes ago, edjr said:

:lol:

You best go back and read up on roth IRA. 

I''m certainly not an expert on it at all so maybe I am misunderstanding it.  All I know is that my 401k is in Roth and that I pay the tax on it now.  I was told that it will be tax free with I take it out for retirement, which is what I want.

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2 minutes ago, Hawkeye21 said:

I''m certainly not an expert on it at all so maybe I am misunderstanding it.  All I know is that my 401k is in Roth and that I pay the tax on it now.  I was told that it will be tax free with I take it out for retirement, which is what I want.

You were lied to.

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for funs sake, lets say you put 50000 in your Roth IRA until you retire.

Lets pretend your Roth IRA makes 200000 in returns.

you pay taxes on the 200k

hth

 think the gubment is going to let you make money for free and not tax you :lol:

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I have a Roth and a traditional IRA along with my company plan. 

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4 minutes ago, Hawkeye21 said:

I''m certainly not an expert on it at all so maybe I am misunderstanding it.  All I know is that my 401k is in Roth and that I pay the tax on it now.  I was told that it will be tax free with I take it out for retirement, which is what I want.

I don't think Ed knows what he's talking about.  I have some of my 401k going to Roth as well and yes, it will be tax free when taken out.  There are some differences between a ROTH 401k and "regular" Roth but that's not one of them.

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If you have a 401k.. many have Roth options.  I went 100% Roth about 2 years ago and have 45k in that Roth fund now.

 

 

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1 minute ago, edjr said:

for funs sake, lets say you put 50000 in your Roth IRA until you retire.

Lets pretend your Roth IRA makes 200000 in returns.

you pay taxes on the 200k

hth

 think the gubment is going to let you make money and not tax you :lol:

You need to go read up about Roth IRA's.

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1 minute ago, edjr said:

for funs sake, lets say you put 50000 in your Roth IRA until you retire.

Lets pretend your Roth IRA makes 200000 in returns.

you pay taxes on the 200k

hth

 think the gubment is going to let you make money for free and not tax you :lol:

Uhh no... you do not pay on the growth.

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1 minute ago, Strike said:

I don't think Ed knows what he's talking about.  

 

nah, you clowns are right. the gubment won't tax the money your account makes :lol:

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Just now, edjr said:

for funs sake, lets say you put 50000 in your Roth IRA until you retire.

Lets pretend your Roth IRA makes 200000 in returns.

you pay taxes on the 200k

hth

Roth IRA

A Roth IRA plan under United States law is generally not taxed upon distribution, provided certain conditions are met. The principal difference between Roth IRAs and most other tax-advantaged retirement plans is that rather than granting a tax reduction for contributions to the retirement plan, qualified withdrawals from the Roth IRA plan are tax-free, and growth in the account is tax-free.
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1 minute ago, edjr said:

 

nah, you clowns are right. the gubment won't tax the money your account makes :lol:

As of now, gains are tax-free in a Roth IRA.  

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2 minutes ago, Strike said:

I don't think Ed knows what he's talking about.  I have some of my 401k going to Roth as well and yes, it will be tax free when taken out.  There are some differences between a ROTH 401k and "regular" Roth but that's not one of them.

I didn't think he sounded correct.  I know it's been awhile since I've had to think about it but I remember talking it over when I decided on Roth.

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There are two possible answers to this question, depending on whether or not the distribution from the Roth IRA is qualified.

Earnings on investments within a Roth IRA are neither subject to income tax nor are they included in the IRA owner's income. Instead, they accumulate on a tax-deferred basis and are tax free when withdrawn from the Roth if the distribution is qualified.

If an individual receives a distribution from his/her Roth IRA and the distribution is qualified and therefore tax free, the amount is not included in the individual's income - therefore, it is not included in the modified adjusted gross income (MAGI) to determine Roth IRA eligibility. However, if the distribution is not qualified, then the amount attributable to earnings is included in the individual's MAGI to determine Roth IRA eligibility.

 

 

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