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Oct 10, 2017 15:36:48 GMT -5
Post by mytakeonit on Oct 10, 2017 15:36:48 GMT -5
liane - you better delete your post because the IRS is watching.
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Post by liane on Oct 10, 2017 15:39:48 GMT -5
No, it is correct. You pay the tax on the money contributed to the Roth, but none on any gains (of which I hope there are a lot!)
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Post by mytakeonit on Oct 10, 2017 15:40:30 GMT -5
I'm not too concerned with it because I'm leaving it all for my daughter. She can later figure out how to handle the megatrillionkazillion accounts.
liane - I understand the Roth, just not how you converted it. I also couldn't do a Roth and haven't really kept up with it.
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Post by boca1girl on Oct 10, 2017 15:50:31 GMT -5
You can convert any amount from an IRA to a Roth, but you do have to pay the tax in the year converted. There's other rules too for partial conversions. Since I make too much to directly contribute to a Roth, I must first put it in my SIMPLE IRA. I just make it a habit of converting my entire contribution to the Roth every year (so my MNKD gains will never be taxed). I tried that but it blew up in my face. The first trading day of 2016 I rolled all of my shares to a Roth and then SYN dumped us. You know the rest of the story about the stock price in 2016. Instead of paying the tax to convert, I recharacterized. Terrible timing. Had I done the same thing in 2017, I would have been a genius, but I was gun shy. Congratulations to those who timed it right.
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Oct 10, 2017 19:01:55 GMT -5
via mobile
kite likes this
Post by boytroy88 on Oct 10, 2017 19:01:55 GMT -5
You can convert any amount from an IRA to a Roth, but you do have to pay the tax in the year converted. There's other rules too for partial conversions. Since I make too much to directly contribute to a Roth, I must first put it in my SIMPLE IRA. I just make it a habit of converting my entire contribution to the Roth every year (so my MNKD gains will never be taxed). I thought they did away with that loophole last year...hmmm...have to take another look into that.
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Post by rockstarrick on Oct 10, 2017 22:35:44 GMT -5
I'm not too concerned with it because I'm leaving it all for my daughter. She can later figure out how to handle the megatrillionkazillion accounts. liane - I understand the Roth, just not how you converted it. I also couldn't do a Roth and haven't really kept up with it. When you re-characterize a 401k or IRA to a ROTH IRA, you pay taxes on the amount the account is worth at the close on the date you re-characterize. After those taxes are paid, everything from that point on is tax free, interest for loaning shares, tax free,,, buy and sell for mass profits until hell freezes over, tax free. That’s just the way it works. FYI 😎
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Oct 10, 2017 23:10:28 GMT -5
Post by mytakeonit on Oct 10, 2017 23:10:28 GMT -5
rockstar - from the beginning I was really impressed with the idea of the Roth, but I wasn't qualified to take advantage of it. Too bad ... so sad ... guess my daughter will help support the country back to profitability. Ha!
Glad that the Roth limits aren't in effect in this situation and you all could take advantage of it.
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