Roth - i.r.a.

[Valerie]

The Roth IRA in a nutshell.

The Roth IRA was born on January 1, 1998 as a result of the Taxpayer Relief Act of 1997. It's named after former Senator William V. Roth, Jr.

The Roth IRA provides no deduction for contributions, but instead provides a benefit that isn't available for any other form of retirement savings: if you meet certain requirements, all earnings are tax free when you or your beneficiary withdraw them. Other benefits include avoiding the early distribution penalty on certain withdrawals, and avoiding the need to take minimum distributions after age 70½.

http://finance.yahoo.com/taxes/article/100410/Roth_IRA_101

 

[Valerie]

The Roth IRA in a nutshell.

The Roth IRA was born on January 1, 1998 as a result of the Taxpayer Relief Act of 1997. It's named after former Senator William V. Roth, Jr.

The Roth IRA provides no deduction for contributions, but instead provides a benefit that isn't available for any other form of retirement savings: if you meet certain requirements, all earnings are tax free when you or your beneficiary withdraw them. Other benefits include avoiding the early distribution penalty on certain withdrawals, and avoiding the need to take minimum distributions after age 70½.

http://finance.yahoo.com/taxes/article/100410/Roth_IRA_101

It's not too late to make your 2008 contribution! The market is offering an opportunity of a lifetime, so if you can afford to set aside as little as $500 and as much as $5000 by April 15th, the growth will not be taxed when you withdraw it in your retirement years!

 

[Valerie]

The Roth IRA in a nutshell.

The Roth IRA was born on January 1, 1998 as a result of the Taxpayer Relief Act of 1997. It's named after former Senator William V. Roth, Jr.

The Roth IRA provides no deduction for contributions, but instead provides a benefit that isn't available for any other form of retirement savings: if you meet certain requirements, all earnings are tax free when you or your beneficiary withdraw them. Other benefits include avoiding the early distribution penalty on certain withdrawals, and avoiding the need to take minimum distributions after age 70½.

http://finance.yahoo.com/taxes/article/100410/Roth_IRA_101

It's not too late to make your 2008 contribution! The market is offering an opportunity of a lifetime, so if you can afford to set aside as little as $500 and as much as $5000 by April 15th, the growth will not be taxed when you withdraw it in your retirement years!

I highly recommend ROTH IRAs for those who want to secure their own future.

You're eligible to make a regular contribution to a Roth IRA even if you participate in a retirement plan maintained by your employer.

There are just two requirements. First, you or your spouse must have compensation or alimony income equal to the amount contributed. And second, your modified adjusted gross income can't exceed certain limits. For the maximum contribution, the limits are $95,000 for single individuals and $150,000 for married individuals filing joint returns.

When you've withdrawn all your contributions (regular and rollover), any subsequent withdrawals come from earnings. The withdrawals are tax-free if you're over age 59½ and at least five years have expired since you established your Roth IRA.

There are two other significant advantages to the Roth IRA. One is that the minimum distribution rules don't apply. If you're able to live on other resources after retirement, you don't have to draw on your Roth IRA at age 70½. That means your earnings continue to grow tax-free. The other advantage is the ability to take certain early distributions without paying the early distribution penalty. In short, the Roth IRA makes it easier to keep your money in, and also easier to take your money out.

 

[Valerie]

http://finance.yahoo.com/taxes/article/100410/Roth_IRA_101

It's not too late to make your 2008 contribution! The market is offering an opportunity of a lifetime, so if you can afford to set aside as little as $500 and as much as $5000 by April 15th, the growth will not be taxed when you withdraw it in your retirement years!

I highly recommend ROTH IRAs for those who want to secure their own future.

When you've withdrawn all your contributions (regular and rollover), any subsequent withdrawals come from earnings. The withdrawals are tax-free if you're over age 59½ and at least five years have expired since you established your Roth IRA.

There are two other significant advantages to the Roth IRA. One is that the minimum distribution rules don't apply. If you're able to live on other resources after retirement, you don't have to draw on your Roth IRA at age 70½. That means your earnings continue to grow tax-free. The other advantage is the ability to take certain early distributions without paying the early distribution penalty. In short, the Roth IRA makes it easier to keep your money in, and also easier to take your money out.

Some good info:

IRA Online Resource Guide - Information About Roth IRAs

A Roth IRA is an individual retirement arrangement that, except as explained below, is subject to the rules that apply to a traditional IRA. It can be either an account or an annuity. Individual retirement accounts and annuities are described in Traditional IRAs.

To be a Roth IRA, the account or annuity must be designated as a Roth IRA when it is set up. A deemed IRA can be a Roth IRA, but neither a SEP-IRA nor SIMPLE IRA can be designated as a Roth IRA. Unlike a traditional IRA, you cannot deduct contributions to a Roth IRA. But, if you satisfy the requirements, qualified distributions (defined in Publication 590) are tax free. Contributions can be made to your Roth IRA after you reach age 70 1/2 and you can leave amounts in your Roth IRA as long as you live.

Details about Roth IRAs are contained in Publication 590, Individual Retirement Arrangements (IRAs) and include:

*
Setting up your Roth IRA;
*
Contributions to your Roth IRA; and
*
Distributions (withdrawals) from your Roth IRA.

Investing basics and lots of other tips are included at Get the Facts: The SEC's Roadmap to Savings and Investing, information provided by the Securities and Exchange Commission. IRA Online Resource Guide - Information About Roth IRAs

Roth Accounts Are Bigger
How to Start a Roth IRA


Info on recent IRA rule changes:
http://finance.yahoo.com/retirement/article/106391/Congress-Revises-Retirement-Fund-Rules
Roth Is a Good Way to Hedge on Your Future Taxes - WSJ.com




Traditional IRA income and Social Security income are TAXED income!

Take control of your future and begin saving in a ROTH IRA - NOW!

The opportunity of a lifetime is here.

http://finance.yahoo.com/calculator/retirement/ret07

 

[Paulie]

Val, people also need to know how to manage their IRA's too. Most people just think they can stick their cash in every year and earn a ton of money for retirement. IRA's took a beating just like 401k's. I recommend about 20% of your IRA in precious metals, if it's an available option to you. I also recommend energy positions as well.

It's time people started educating themselves on finance and managing their OWN portfolios.

 

[Valerie]

Val, people also need to know how to manage their IRA's too. Most people just think they can stick their cash in every year and earn a ton of money for retirement. IRA's took a beating just like 401k's. I recommend about 20% of your IRA in precious metals, if it's an available option to you. I also recommend energy positions as well.

It's time people started educating themselves on finance and managing their OWN portfolios.

Yes, most people are intimidated by the process and it's a shame because the rich just keep getting richer and fear keeps the little guy from taking the opportunity.

People should know they can hold all sorts of securities within their retirement accounts. You can hold bonds, CDs, annuities, stocks, mutual funds, ETFs, commodities, cash, etc...and a ROTH provides an opportunity for TAX FREE growth in all of these vehicles!

 

[Immanuel]

I switched my contributions to my 401k last year (what I was putting into my 401k) to a Roth IRA. My employer did not match any contributions for the 401k and my current tax bracket is low enough that I actually should end up better off contributing to the Roth.

If my employer matched 401k contributions, I would not consider it, because the matching contributions (if they are significant) are actually earnings on the 401k, but since my employer doesn't match, I may as well use the benefits of the Roth and not risk tieing up those contributions if I should need them before retirement.

One benefit of the Roth is that if I need to use the principal for any reason ie down payment on a house, paying off credit cards etc, I can do so without the tax penalties associated with a 401k.

But, think about your situation before you make the leap from a 401k to a Roth. If your employer matches even 50 cents on the dollar up to a certain amount, remember that that is 50 cents on the dollar of earnings you will have to make up on the Roth and that is not easy to do.

Immie

 

[dilloduck]

I guess my mattress ain't such a great idea, huh ?

 

[Valerie]

I guess my mattress ain't such a great idea, huh ?

Actually, considering that a dollar is now worth around seventy five cents, that might not be a bad plan at all! When it comes back to even -- however long that takes -- you will have earned thirty three percent on your money! Just don't tell your neighbors about the mattress!

Bloomberg.com: Benchmark Currency Rates

 

[dilloduck]

I guess my mattress ain't such a great idea, huh ?

Actually, considering that a dollar is now worth around seventy five cents, that might not be a bad plan at all! When it comes back to even -- however long that takes -- you will have earned thirty three percent on your money! Just don't tell your neighbors about the mattress!

Bloomberg.com: Benchmark Currency Rates

How about pennies? They're harder to sleep on but harder to steal too .I'm thinking maybe they're holding their value a bit better than paper.

 

[Valerie]

I guess my mattress ain't such a great idea, huh ?

Actually, considering that a dollar is now worth around seventy five cents, that might not be a bad plan at all! When it comes back to even -- however long that takes -- you will have earned thirty three percent on your money! Just don't tell your neighbors about the mattress!

Bloomberg.com: Benchmark Currency Rates

How about pennies? They're harder to sleep on but harder to steal too .I'm thinking maybe they're holding their value a bit better than paper.

Yes, actually I think the copper (weight) in pennies is worth more than a cent now.

It's against the law to melt them down though.

 

[dilloduck]

Actually, considering that a dollar is now worth around seventy five cents, that might not be a bad plan at all! When it comes back to even -- however long that takes -- you will have earned thirty three percent on your money! Just don't tell your neighbors about the mattress!

Bloomberg.com: Benchmark Currency Rates

How about pennies? They're harder to sleep on but harder to steal too .I'm thinking maybe they're holding their value a bit better than paper.

Yes, actually I think the copper (weight) in pennies is worth more than a cent now.

It's against the law to melt them down though.

I think they're mostly zinc now but if the rest of the economy can melt down then mine can too, dammit !

 

[Paulie]

How about pennies? They're harder to sleep on but harder to steal too .I'm thinking maybe they're holding their value a bit better than paper.

Yes, actually I think the copper (weight) in pennies is worth more than a cent now.

It's against the law to melt them down though.

I think they're mostly zinc now but if the rest of the economy can melt down then mine can too, dammit !

Pre-1982 pennies are copper. Early in 2008 when inflation was up and base metals were high, people were getting .02 on the penny just by selling them.

I know people who bought a machine that specifically separates the coppers from the zincs, it's expensive but people were actually making enough profit that they were going to the bank and trading cash for penny rolls.

 

[editec]

I guess my mattress ain't such a great idea, huh ?

Actually, considering that a dollar is now worth around seventy five cents, that might not be a bad plan at all! When it comes back to even -- however long that takes -- you will have earned thirty three percent on your money! Just don't tell your neighbors about the mattress!

Bloomberg.com: Benchmark Currency Rates

You honestly think the dollar's coming back?

I think the best thing that can happen to this economy is the dollar plummets as our economy heats up.

Yeah our government and ourselves won't be able to float enormous debts anymore, but hey! that's no exactly a bad thing.

Plus a much weaker dollar (comparitive to other currencies) will do much to help exports while limiting imports.

Additionally, it'll help out the majority of American who have less than zero net worths, now, thanks to the decline in Real estate values.

That is assuming of course that inflation starts recovering some of the losses in RE values.

Having a strong dollar isn't ALWAYS such a good thing.

 

[Valerie]

I guess my mattress ain't such a great idea, huh ?

Actually, considering that a dollar is now worth around seventy five cents, that might not be a bad plan at all! When it comes back to even -- however long that takes -- you will have earned thirty three percent on your money! Just don't tell your neighbors about the mattress!

Bloomberg.com: Benchmark Currency Rates

You honestly think the dollar's coming back?

I think the best thing that can happen to this economy is the dollar plummets as our economy heats up.

Yeah our government and ourselves won't be able to float enormous debts anymore, but hey! that's no exactly a bad thing.

Plus a much weaker dollar (comparitive to other currencies) will do much to help exports while limiting imports.

Additionally, it'll help out the majority of American who have less than zero net worths, now, thanks to the decline in Real estate values.

That is assuming of course that inflation starts recovering some of the losses in RE values.

Having a strong dollar isn't ALWAYS such a good thing.

For years now the official policy of the central bank has been to devalue the US dollar, print more money and keep interest rates low. Our enormous debt is cheaper that way!

US Dollar to Euro (/EURUSD) - Stock chart, Index chart - MSN Money

 

[dilloduck]

Actually, considering that a dollar is now worth around seventy five cents, that might not be a bad plan at all! When it comes back to even -- however long that takes -- you will have earned thirty three percent on your money! Just don't tell your neighbors about the mattress!

Bloomberg.com: Benchmark Currency Rates

You honestly think the dollar's coming back?

I think the best thing that can happen to this economy is the dollar plummets as our economy heats up.

Yeah our government and ourselves won't be able to float enormous debts anymore, but hey! that's no exactly a bad thing.

Plus a much weaker dollar (comparitive to other currencies) will do much to help exports while limiting imports.

Additionally, it'll help out the majority of American who have less than zero net worths, now, thanks to the decline in Real estate values.

That is assuming of course that inflation starts recovering some of the losses in RE values.

Having a strong dollar isn't ALWAYS such a good thing.

For years now the official policy of the central bank has been to devalue the US dollar, print more money and keep interest rates low. Our enormous debt is cheaper that way!

US Dollar to Euro (/EURUSD) - Stock chart, Index chart - MSN Money

what do you mean "we". Ain't my debt !!

 

[Valerie]

You honestly think the dollar's coming back?

I think the best thing that can happen to this economy is the dollar plummets as our economy heats up.

Yeah our government and ourselves won't be able to float enormous debts anymore, but hey! that's no exactly a bad thing.

Plus a much weaker dollar (comparitive to other currencies) will do much to help exports while limiting imports.

Additionally, it'll help out the majority of American who have less than zero net worths, now, thanks to the decline in Real estate values.

That is assuming of course that inflation starts recovering some of the losses in RE values.

Having a strong dollar isn't ALWAYS such a good thing.

For years now the official policy of the central bank has been to devalue the US dollar, print more money and keep interest rates low. Our enormous debt is cheaper that way!

US Dollar to Euro (/EURUSD) - Stock chart, Index chart - MSN Money

what do you mean "we". Ain't my debt !!

We're ALL paying one way or another! Every 15 months or so our national debt increases by another Trillion $$$ in just interest alone!

 

[dilloduck]

For years now the official policy of the central bank has been to devalue the US dollar, print more money and keep interest rates low. Our enormous debt is cheaper that way!

US Dollar to Euro (/EURUSD) - Stock chart, Index chart - MSN Money

what do you mean "we". Ain't my debt !!

We're ALL paying one way or another! Every 15 months or so our national debt increases by another Trillion $$$ in just interest alone!

I got a note from the treasury dept saying I'm all payed up.

 

[Valerie]

what do you mean "we". Ain't my debt !!

We're ALL paying one way or another! Every 15 months or so our national debt increases by another Trillion $$$ in just interest alone!

I got a note from the treasury dept saying I'm all payed up.

Tax exempt, are you? You wish! (Don't we all?)

Did you start a ROTH IRA for your son yet? You should!

 

[Silver Diva]

I like the Roth too. However, I have seen people get into it without really understanding the process. The worst thing that you can do is fund your Roth before putting the minimum into your regular 401K that is needed to get the full employer match. That really should be the first priority.