What is a roth ira yahoo answers

what is a roth ira yahoo answers

Roth IRA, Mutual funds?

Oct 08,  · A Roth IRA is an Individual Retirement Account that is funded with after tax dollars (same as out of pocket) The maximum contribution to these accounts is $4, ($5, if . Nov 10,  · I Roth IRA is an account authorized by US Federal income tax law to save for retirement. Funds placed into the account are after tax, but .

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An IRA you pay into with after-tax dollars, in exchange for being able to withdraw tax-free at retirement. GREAT deal. With traditional IRAs, you pay with pretax dollars i. I'd rather pay tax now, let the interest accumulate for years, and get tax-free distrubutions from a Roth. A Roth IRA is a retirement account where the money you invest consists of after-tax dollars, but the interest and other earnings are not taxed.

If you are younger than 40, and you think your tax bracket in retirement will be at least as high as it is now, a Roth IRA is probably a good idea. If you're 40 or older, you may want to think about a traditional IRA, especially if you think you'll be what is a roth ira yahoo answers a lower tax bracket in retirement. For more details, see the link below. IRA denotes the individual retirement account and can substitute or complement a K.

Traditional IRAs offer you tax advantages whenever you deposit or add money to your account. On the other hand, a Roth IRA offers you the maximum tax benefit when you withdraw money from your account. A Simple IRA is just like a K with lower contribution limit, but cheaper and has lesser paperwork. If you qualify for a traditional IRA, you can make contributions and pay no income tax on that money, and all investment income is also tax-deferred.

Anything you withdraw is taxed as normal income, but your money as been able to grow untaxed all those years - unlike a cash investment account, what is a roth ira yahoo answers short-term profit is taxed as normal income and long-term profit taxed as capital gains lower tax rate. With a Roth IRA, any contributions are made with money that has how to measure how much electricity an appliance uses been taxed.

There is no immediate tax benefit. But, every cent earned in a Roth you will never owe tax on. If you are covered by a K, b or other qualified plan, you may not be able to contribute to a tax-deferred traditional IRA, but you may still do a Roth. Some financial advisers recommend not having too much tax-deferred money, because if you should be lucky enough to have squirreled away a pile and it earned well, you may just nullify the purpose of the plan in the first place, which was to have income that would be taxed at theoretical lower rates in your golden years.

If you're lucky, you may be in the same bracket as when you were working. So, these people advise, it's wise to also put money into a Roth, because that money and whatever it earns will never be taxed. I say if you're that lucky to still be in a high tax bracket after retirement, count your blessings.

It will take a long time for the smaller Roth contribution to catch up. I say, max out your personal pension plan contributions or traditional IRA, if you aren't covered by oneand if you still have money to invest, definitely do a Roth as well.

You can open a Roth at most banks and credit unions and buy CDs. I recommend getting an account with a discount broker such as Schwab and put the money in some good no-load mutual funds. You can get one with just about any investment company and firm. I would suggest T. Rowe Price. They offer target IRAs. Just select your target date and they do the rest. They invest and allocate and shift money over time from aggressive to conservative investments to protect your monety.

Low fees too. Also, Fidelity, and Vanguard are good too. Most people my age don't know this kind of stuff. A Roth IRA is a retirement savings or investment account which offers you tax priviledges if you follow certain rules. There are other rules but basically what the IRS is saying to how to name my website is this: Hey, we would like to help you save for your retirement and give you some wonderful tax breaks but you must make sure the money stays in the account until your retirement.

You can't have your cake and eat it. If you want the tax breaks you how to activate the chakras in body to use the money for retirement only.

The best way to get one what is a roth ira yahoo answers to speak to an experienced investment advisor who will not only guide you to the most appropriate one for you but will also stay with you in the years to come and help you along the way. Making sure you are in the right investment is very important. Your happiness in retirement may depend on it. Trying to find an investment on your own or maintaining an investment portfolio on you own may cost you success. Investing for retirement what r the 7 sacraments in order not a do it yourself project.

It is an individual retirement account that is funded by you with after-tax dollars. The proceeds are entirely tax-FREE! The main benefit is that you pay no income tax on the growth you achieve for all the years you own the fund. That's way better than a traditional IRA, where you get to defer the tax how to make a digital 3d model the money you put into it, but when you cash it in, you pay tax not only on your own contributions, but on the growth as well.

Go to any big mutual fund company website, like troweprice or fidelity or vanguard and read up on it. Named for its chief legislative sponsor, U. Senator William V. Roth Jr. Trending News. Indianapolis FedEx shooting victims identified. Pentagon confirms leaked UFO photos, video are real. Rodgers as 'Jeopardy! Jake Paul said he has 'early signs of CTE'.

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Looking for what is a roth ira yahoo answers to move? What are it's benefits? Detriments "non-benefits"? How do I get one? Answer Save. Uncle Leo Lv 5. Pitty T. How do what is a roth ira yahoo answers think about the answers? You can sign in to what happened in the compromise of 1850 the answer. Richard Jackel. Carlos R Lv 5.

Krakz M. The General. This website will answer ALLof your questions. Show more answers 1. Still have questions? Get your answers by asking now.

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Jul 28,  · A Roth IRA is a specific type of IRA that is contributed to with "after-tax dollars", meaning that you do not get a tax break on your contributions. HOWEVER, the earnings are tax deferred and may. Nov 04,  · A Roth IRA is a retirement account that allows you to save month that can grow as it is invested and you can withdraw the money in retirement tax free. . Mar 03,  · ROTH IRA is a retirement account that has tax free growth and tax free withdrawal at retirement. You can put a max contribution of $ 4, dollars each year in .

There will be no changes to other Yahoo properties or services, or your Yahoo account. You can find more information about the Yahoo Answers shutdown and how to download your data on this help page. Mutual fund Roths Depends on the Mutual fund?

Well, i just wanted to know I thought mutual funds performed however you invested and based on your contributions you got interest on that. I already have a mutual fund Roth I just expected to get interest too. My apologies if I am mistaken.

An IRA is an "individual retirement account" into which you are allowed to put 'pre-tax' dollars, ie money taken out of your 'gross' earnings before you pay any taxes. This money can grow tax-deferred until after you are You will pay regular income tax when you withdraw it after that age. A Roth IRA is funded with 'after-tax' dollars, ie you pay tax on your pay-check, and then invest some of what you have in the Roth, and you will pay NO tax on it when you draw it out in retirement.

Inside either an IRA or a Roth IRA you can invest the funds as you see fit; the younger you are, the more 'potential risk' you should take for potential gain. If you are under 30, paradoxically, "safer" investments are much higher risk, because you will get only guaranteed low returns; while a stock mutual fund might 'bounce around' if you look at day-to-day or week-to-week performance, over any longer period you will always earn more money.

If you are under 30, there is almost no good reason to own interest-bearing instruments inside your IRA. No point in having 1. Bank instruments and bonds do not beat inflation and inputed taxes. They are not safer if you understand what safe means. It is safe to say you will fail to retire well if you don't go into equity - stocks.

If your money does not work you can't stop. Get this notion out of your head that if you nominally have mor emoney you are ahead.

If inflation trur - not cpi is 3. Don't hurt yourself and your family by not understanding this as a fact. The Roth just holds the investment. The investments must be the right 1s or don't even bother having 1.

Please feel free to contact me with further qs before you move forward. An IRA whether Roth, traditional or simple are simply buckets that you fill up with things for your retirement. There is no reason to be looking for interest bearing Roth IRA accounts, especially if you're young.

Over time, the market will give you MUCH better gains and provide you with a much better retirement base. The markets have taken two hits since your purchase and I'd guess your even in one and up a few bucks in the other IRA's taken out last April fell terribly in a May sell-off Equity stocks mutual funds distribute capital gains and dividends, not interest. Update: Well, i just wanted to know Answer Save. Kitty Lv 6. What do you think of the answers? You can sign in to give your opinion on the answer.

Derek, you are being a " panic seller" Still have questions? Get answers by asking now.

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