Search Results for: roth ira

Am I Too Old to Invest with a Roth IRA?

I recently received this question from a reader about investing with a Roth IRA closer to retirement: "I am a public school teacher, 46 years old. I have a public employee pension that I contribute to and can begin collecting on once I retire. I will also obviously have S.S. money. I have no credit card debt and have paid off all student loans. I have some extra money to play with. I was wondering if it makes sense at 46 to open a Roth IRA now if I plan to retire in 9 … [Read more...]

Traditional and Roth IRA Income Limits for 2021

Contributing to an IRA is a smart move. There are two major varieties for the typical taxpayer to take advantage of: Traditional or Roth. The Traditional IRA gives you a tax deduction on contributions, while the Roth IRA lets you take distributions from the account in retirement without paying taxes. They are both excellent tools to help you build a substantial portfolio enabling you to support yourself when you can no longer … [Read more...]

Excess Roth IRA Contributions: Does My Brokerage Keep Track of Income Limits?

According to the IRS's Roth IRA income limitations, if you plan to file married filing jointly and make $183,000 or over in Modified Adjusted Gross Income (MAGI) in 2012, then you cannot make contributions to a Roth IRA. Many dual income households are now staring down this Roth IRA limit. Such is the case of this PT Money reader who asks: I am considering opening a Roth IRA account with an online broker, but I have a few tax questions first. If I make some stock … [Read more...]

What Makes a Roth IRA So Great [In Plain English How it Works]

Do you know about the Roth IRA? Saving for your retirement is important. You need to have money saved by the time you retire so that you can afford your expenses when you are physically and mentally unable to work. When people talk retirement, the Roth IRA often comes up. Rightfully so. It's an excellent tool to help you save more money for your retirement. I've used it in the past, in addition to my company's 401K, to help me save for my own retirement … [Read more...]

10 Reasons to Get Off Your Butt and Start a Roth IRA

I really love the Roth IRA. There are so many reasons to start one of these bad boys and get going with your retirement savings. Today I thought I'd do a little convincing and list some of the reasons to start a Roth IRA. So check these out and then get started. Seriously. No excuses. 1. You'll Be More Prepared for Retirement The Roth IRA was created to provide incentive for you to save for your own retirement. Use it. Retirement will be a … [Read more...]

Understand Roth IRAs and Use Them for Your Advantage

The late Senator William V. Roth, Jr. The traditional individual retirement account (IRA) has long been a savvy way to do some tax-deferred investing for retirement. Though the Roth IRA was established by the Taxpayer Relief Act of 1997 and named for Delaware Senator William Roth (who was a key player in the Act), this retirement vehicle is still not quite as well-known or understood as the traditional counterpart. The Roth IRA … [Read more...]

5 Things to Know About Roth IRA Withdrawals

David Lee Roth did Not Invent the Roth IRA Withdrawal Rules We spend a lot of time talking about contributions to a Roth IRA and how to open a Roth IRA. And rightfully so. The hard part is starting up and sticking to a retirement investing plan. Pulling the money out is easy. But there are some rules you should be aware of. If you are near retirement, I recommend you spend some money on a independent, fee-only financial advisor, who can explain your Roth IRA … [Read more...]

Roth IRA CD: Tax-Advantaged Retirement Investing without the Risk

If you're worried about the risks with investing in the stock market, check out a Roth IRA CD. Are you putting off your retirement investing because of the risk you see in the current market? Or maybe you see too much risk overall in stocks? Or maybe you have lot saved for retirement already but can't stomach putting more into stocks. If any of those describe you, then maybe you should consider the Roth IRA CD. A Roth IRA CD is simply a normal certificate of … [Read more...]

Roth IRA vs 401K: Which is Right for You?

Roth IRA vs 401K: a Classic Matchup Which retirement savings account is better for you, the Roth IRA or 401K? The short answer is that it doesn't really matter because they are both great tax-advantaged tools for helping you save money for retirement. And it really depends on your situation and your preferences when trying to decide which is truly best for you. Below I'll try and present the facts about the two types of retirement accounts and let you do the … [Read more...]

How to Find the Best Roth IRA Rates

Looking for the best Roth IRA rates? Have you ever wondered what the best Roth IRA rates are? Well, you are not alone. Many people looking to start investing for their retirement think the same thing. The problem is that Roth IRAs don't really have rates like a savings account or CD. They are just investment vehicles (or accounts). What is a Roth IRA? The Roth IRA or Roth Individual Retirement Arrangement (or Account or Agreement) was created as part of … [Read more...]

Vanguard Roth IRA Account Opening Process

How to open your Vanguard Roth IRA. I recently opened a Roth IRA for the first time. For more information on the Roth IRA, see that post. Today I wanted to get into a little more detail about that process, specifically the Vanguard Roth IRA opening process. As an FYI, these screens may change over time, but the process should stay the same. You'll need to select the type of investment account, enter your personal and banking information, select a fund or funds, and … [Read more...]

The End of the 401K Match and Random Thoughts on the 401k vs a Roth IRA

My company is about to stop matching my contributions to my 401k. Beginning this month, my company is no longer matching my contributions to the company 401k. That's essentially $2,000 less in compensation I'll receive this year if they don't match for the remainder of the year. They do say that this is a temporary, precautionary move. Still, this is disappointing news. I thought about making this post a rant about why that is a horrible … [Read more...]