User Panel
Posted: 3/23/2017 9:49:46 PM EDT
So the "I'm a failed QB, look at my hot wife and give me advice" thread reminded me that I needed to research that Roth I've been thinking about starting to supplement the 401k, reduce tax liability in retirement etc. So I'm reading up about contribution limits on Vanguard and apparently Roths have income limits. WTF? So if you make decent money you lose savings options? You're already paying higher taxes your whole career and now you can't even take advantage of some tax savings for a retirement account?!? Seriously fucked.
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Welcome to US tax policy for the last several decades! The more you make, the more tax you pay, with less tax-advantaged ways to save too!
Congress should be ashamed. |
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the rothchilds do not have income limits, no.
ETA: not fair you changed it |
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Open a traditional IRA, transfer 5500, call your bank and tell them you want to do a conversion to a roth ira.
If you have USAA they will do it all for you over the phone. You're welcome. |
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So the "I'm a failed QB, look at my hot wife and give me advice" thread View Quote |
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So the "I'm a failed QB, look at my hot wife and give me advice" thread reminded me that I needed to research that Roth I've been thinking about starting to supplement the 401k, reduce tax liability in retirement etc. So I'm reading up about contribution limits on Vanguard and apparently Roths have income limits. WTF? So if you make decent money you lose savings options? You're already paying higher taxes your whole career and now you can't even take advantage of some tax savings for a retirement account?!? Seriously fucked. View Quote ETA: also look up backdoor roth. |
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Wealthy people already know how to get tax breaks through their businesses.
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So the "I'm a failed QB, look at my hot wife and give me advice" thread reminded me that I needed to research that Roth I've been thinking about starting to supplement the 401k, reduce tax liability in retirement etc. So I'm reading up about contribution limits on Vanguard and apparently Roths have income limits. WTF? So if you make decent money you lose savings options? You're already paying higher taxes your whole career and now you can't even take advantage of some tax savings for a retirement account?!? Seriously fucked. View Quote Google mega backdoor Roth. |
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LOL. So just because a guy played QB at level you couldn't even sniff, but isn't a star in the NFL now you say he failed? So what have you done as an athlete that tops being a QB at a D1 school? Let me guess, if you didn't blow your knee out in HS you woulda coulda shoulda....
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Can you do that if you currently have a 401k w/ employer? What about continued contributions? View Quote You can do this every year. It's simplest if you have no existing traditional IRA. If you do have an existing traditional IRA for which you have taken write-offs for the contributions already, you will have to pay tax on a portion of the conversion each time you do it. |
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Can you do that if you currently have a 401k w/ employer? What about continued contributions? View Quote I did ghost last year. Opened both on schwab, transfered money into the regular Ira, then into the Roth 5 min later. Perfectly legal. Now the money grows tax free. |
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uhh yeah, if that pisses you off, don't start researching income limits for other tax breaks, like student loan interest. . . ETA: also look up backdoor roth. View Quote |
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LOL. So just because a guy played QB at level you couldn't even sniff, but isn't a star in the NFL now you say he failed? So what have you done as an athlete that tops being a QB at a D1 school? Let me guess, if you didn't blow your knee out in HS you woulda coulda shoulda.... View Quote |
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The financial adviser I worked with at USAA said we could. View Quote View All Quotes View All Quotes |
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Yes, you can do it if you currently have a 401k. You can do this every year. It's simplest if you have no existing traditional IRA. If you do have an existing traditional IRA for which you have taken write-offs for the contributions already, you will have to pay tax on a portion of the conversion each time you do it. View Quote |
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Penny stocks and young Roths are a perfect marrage.
Remember dont buy into a dilution a scheme, be the dilution scheme. Im sure there are Roths worth BILLIONS |
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Penny stocks and young Roths are a perfect marrage.
Remember dont buy into a dilution a scheme, be the dilution scheme. Im sure there are Roths worth BILLIONS |
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That's good info to know. Wife has IRA, I only have 401k but we file jointly. I'll have to do more research. Hopefully I can keep the Roth on my side and avoid the extra taxes. View Quote View All Quotes View All Quotes Quoted:
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Yes, you can do it if you currently have a 401k. You can do this every year. It's simplest if you have no existing traditional IRA. If you do have an existing traditional IRA for which you have taken write-offs for the contributions already, you will have to pay tax on a portion of the conversion each time you do it. |
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Lol, the wife and I kissed that deduction away years ago. But student loan deductions is peanuts compared to no Roth IRA. View Quote View All Quotes View All Quotes Quoted:
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uhh yeah, if that pisses you off, don't start researching income limits for other tax breaks, like student loan interest. . . ETA: also look up backdoor roth. |
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Let me get this straight...If I make more than 70k I can't deduct an IRA contribution from my taxes? But if I convert that contribution to a Roth IRA, the earnings aren't taxable?
what kind of nonsense is this..it's almost like you are being penalized for working hard and making money. |
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And if you think that's bad, both thanks to 0bamacare, there's the Medicare Surcharge (an extra 0.9% of your income) and the Net Investment Income Tax (3.8% of your investment [i.e. passive] income) gone as well.
Thanks, 0bama! These two taxes, BTW, are what Pelosi is whining about when she accuses the Republicans of transferring billions of $to the wealthiest Americans by eliminating 0bamacare. Yea, they're transferring billions back to rich people by stopping the transfer of billions from "rich" people to poor people. |
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Lemme guess, OP is between 35 and 45, making the best money they ever had, and just realized that they are fucked. Gummint gets most of what you make.
Stick some cash in one of those ' don't pay taxes later, pay em now', accounts, and be thankful the gummint lets you keep some. ETA: No, I'm not bitter. Roads and shit. |
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Translation "I'm rich woe is me" View Quote OP, my wife and I had this happen for the first time this year. I didn't even know it was a thing. Our combined AGI was $192,000 I think. So we had to open up HSAs to lower our AGI. So fucking stupid. We busted our asses last year, made good money, saved, invested, etc. "Oh thank you very much Mr./Mrs. hard-working responsible citizen. FUCK YOU, PAY ME EVEN MORE!!!!" I fucking hate tax time. It won't be an issue again. We have our first kid due in June, so with her being out a few months after the birth, our income will be lower. Still a ridiculous thing. |
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Rich? The phase-out income for a Roth IRA is $187,000 for married filing jointly. For every $1,000 in income after that, your Roth contribution limit drops $500 PER PERSON. If that is rich, things really have gone to shit. OP, my wife and I had this happen for the first time this year. I didn't even know it was a thing. Our combined AGI was $192,000 I think. So we had to open up HSAs to lower our AGI. So fucking stupid. We busted our asses last year, made good money, saved, invested, etc. "Oh thank you very much Mr./Mrs. hard-working responsible citizen. FUCK YOU, PAY ME EVEN MORE!!!!" I fucking hate tax time. It won't be an issue again. We have our first kid due in June, so with her being out a few months after the birth, our income will be lower. Still a ridiculous thing. View Quote |
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Rich? The phase-out income for a Roth IRA is $187,000 for married filing jointly. For every $1,000 in income after that, your Roth contribution limit drops $500 PER PERSON. If that is rich, things really have gone to shit. OP, my wife and I had this happen for the first time this year. I didn't even know it was a thing. Our combined AGI was $192,000 I think. So we had to open up HSAs to lower our AGI. So fucking stupid. We busted our asses last year, made good money, saved, invested, etc. "Oh thank you very much Mr./Mrs. hard-working responsible citizen. FUCK YOU, PAY ME EVEN MORE!!!!" I fucking hate tax time. It won't be an issue again. We have our first kid due in June, so with her being out a few months after the birth, our income will be lower. Still a ridiculous thing. View Quote View All Quotes View All Quotes Quoted:
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Translation "I'm rich woe is me" OP, my wife and I had this happen for the first time this year. I didn't even know it was a thing. Our combined AGI was $192,000 I think. So we had to open up HSAs to lower our AGI. So fucking stupid. We busted our asses last year, made good money, saved, invested, etc. "Oh thank you very much Mr./Mrs. hard-working responsible citizen. FUCK YOU, PAY ME EVEN MORE!!!!" I fucking hate tax time. It won't be an issue again. We have our first kid due in June, so with her being out a few months after the birth, our income will be lower. Still a ridiculous thing. However, since 2010, you can convert to a Roth IRA by first contributing after tax dollars to a Traditional IRA and then the very next day convert it to a Roth IRA. THERE IS NO INCOME LIMIT TO DO THIS. Yes, this is a loophole which is why they call it a "Backdoor Roth IRA". Even better, us rich mofos figured out that we could open up a Traditional IRA before 2010, load it up every year with $5K each (that has increased to $5.5K and more if you're older) and in 2010 we could convert it all to a Roth IRA when the old rules expired. That's $11K total per year in a Roth per couple. |
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Did you bother to read the fucking thread??? You cannot contribute DIRECTLY to a Roth IRA if you are above the income limit. However, since 2010, you can convert to a Roth IRA by first contributing after tax dollars to a Traditional IRA and then the very next day convert it to a Roth IRA. THERE IS NO INCOME LIMIT TO DO THIS. Yes, this is a loophole which is why they call it a "Backdoor Roth IRA". Even better, us rich mofos figured out that we could open up a Traditional IRA before 2010, load it up every year with $5K each (that has increased to $5.5K and more if you're older) and in 2010 we could convert it all to a Roth IRA when the old rules expired. That's $11K total per year in a Roth per couple. View Quote |
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I have had a Roth open since I was 22. I'm 30 now. This is the first year we have had income over the limit. I never even knew it was a thing. Our contributions are drafted automatically each month. So they are fully funded by 12/31. My tax person told me this week that I made excess contributions due to income. I was not commenting on other iras, backdoor or otherwise. View Quote View All Quotes View All Quotes Quoted:
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Did you bother to read the fucking thread??? You cannot contribute DIRECTLY to a Roth IRA if you are above the income limit. However, since 2010, you can convert to a Roth IRA by first contributing after tax dollars to a Traditional IRA and then the very next day convert it to a Roth IRA. THERE IS NO INCOME LIMIT TO DO THIS. Yes, this is a loophole which is why they call it a "Backdoor Roth IRA". Even better, us rich mofos figured out that we could open up a Traditional IRA before 2010, load it up every year with $5K each (that has increased to $5.5K and more if you're older) and in 2010 we could convert it all to a Roth IRA when the old rules expired. That's $11K total per year in a Roth per couple. |
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The federal government has done everything possible to discourage investing in retirement for at least 35 years.
That does not stop us from using other methods than Roths or 429 plans. Wait til you learn about minimum distributions. |
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I'm just here for the link to the QB thread.
OP, google "backdoor roth IRA" I looked into this yesterday a bit. I'm 30 and all we have is my wife's 401k, I need to start contributing to an IRA so we have a little it extra. |
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I have no idea what you're talking about.
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uhh yeah, if that pisses you off, don't start researching income limits for other tax breaks, like student loan interest. . . ETA: also look up backdoor roth. View Quote Do the above! Backdoor Roth IRA can be done in addition to 401k. You can fully fund 401k @ $18k/year and do the after-tax contributions and roll that to a Roth IRA every year. Up to $35,000/year. That's $53,000/year you can contribute to retirement with tax advantages. |
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Vanguard?
Create Traditional IRA. Create ROTH IRA. Put money into Traditional on monday. It clears and goes in Tuesday. Wednesday click on the "convert to ROTH IRA" button. Done. The worst part is that it is tens of thousands of dollars for limits in difference if are married vs single. |
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[/b][/red]That's $53,000/year you can contribute to retirement with tax advantages.[/size=6] View Quote I did this for a single year about 5 years ago and it gives me a lot of peace of mind to know that I have $6k, most of which I can invest in the market, as a 'emergency medical fund' if I need it. Sure, $6k doesn't buy much care these days, but presuming you have SOME kind of insurance, it would definitely help. Better than not having any $ saved. If I don't use it it just continues to grow with the market. |
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