IRA Rules

Posts Tagged ‘how’

Question: Convert IRA to Roth IRA?

When we can convert IRA to Roth IRA? And what limit?
What is the rules?
Please give all usefull informations.
Thanks

Answer: You can convert anytime and many do feel this is the year to convert. You will pay taxes on the amount you convert. You have until April 15 2010 to pay these taxes. With decreased portfolio values it may pay off to convert now, pay less tax and have the investment grow tax free in a Roth. Hope these resources help!!

Contribution Limits for ROTH 401K/IRA or Traditional 401K/IRA

Question: If you own a stock in a IRA, is there a rule that it should be held for a year before selling?

Or has there in the past been a rule that IRA investments should be held for a year before being able to sell or change to another stock(or investment)?
Please help!

Answer: Nothing in law. I know some mutual funds say they have to be held for at least X amount of time or they are subject to penalty.

But you can trade actively within an IRA if you choose to do so.

Question: Roth IRA and your income?

Well, the rules are if you earn and income under 100,000 as a single. Well, what if you Make a Roth IRA then you land a job making $120,000 a year….after you setup a Roth IRA? Or let’s say you end up making it big in music and are selling billion dollar records? Will you still keep that Roth IRA?

Answer: I think you’re confused between be able to contribute to a Roth and having a Roth. You can open a Roth anytime, it is just an investment account. But to be able to contribute to it is another story. Let’s say in 2006, you made less than $95k, you will still be able to put $4k in your Roth; then in 2007, you landed a $150k job, and you file that much in your taxes, then you won’t be able to contribute anymore to your Roth. However, you still can retain your Roth with the $4k you put in the previous year along with any investment gains you might have made.

Retirement Plan: How much is your Roth IRA or 401(k) really worth?