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Ok, Roth IRA time... tell me if I'm on target..

Posted by colin (aka colinski) Oct 30 '13, 09:33

Roth IRA - it's an investment account like a 401k that you can put up to $5500 (post tax money) a year into. All money made is untaxed and you can remove your intial investment at any time, just not the money made until you reach a retirement age. You do not have to remove the money by a certain time like a 401k, so you can gift it to your children if you don't ever need to use it.

Question... can me and my wife each open one since it can only be in one person's name? Double up on that money...

Responses:

Keep in mind that there is also a compensation limit for Roth which depends on your tax filing status - decline Oct 30, 10:02 1
- i'm goooood.. -- nm - colin Oct 30, 10:04
yes. -- nm - Diva Oct 30, 09:35 35
- awesome. i need to get one opened. Fidelity ok? I have a 401k with them.. also, should I be rolling my old 401k into something? - colin Oct 30, 09:40 34
  - Depends. You need to compare fees and investment before doing so - decline Oct 30, 09:56 4
    - Old 401k doesn't cost me anything (that I can tell) and it's got a good set of investments available. - colin Oct 30, 10:02 3
      - ytd is not what to look at. You need to look at your Annual Fee Disclosure (it's also called the 404(a)-5 disclosure). - decline Oct 30, 10:05 2
        
        continued: Plans often have access to better funds than you can get at the retail level - example inside - decline Oct 30, 10:12 1
        
        ah, ok. that's good info, i didn't know that. -- nm - colin Oct 30, 10:39
  - I just switched this morning from vanguard to wells fargo. I was happy-ish with vanguard, but I *love* my WF broker so I want to give him *all* of my - peggy ann mcamanda Oct 30, 09:51 7
    - I like the Vangard index funds. Fidelity seems expensive for stock accounts, but I already am holding some from the purchase plan at the last job. -- nm - colin Oct 30, 10:00 2
      - The Fidelity Index funds are not comparable for being low-cost -- nm - decline Oct 30, 10:05
      - 7.95 for stocks at Fidelity isn't too bad. There are better and worse out there. -- nm - ty97 Oct 30, 10:03
    - I've got Fidelity, Scottrade, and Schwab. My etrade account still exists, but I don't use it. - ty97 Oct 30, 09:52 3
      - I love scottrade's website. it's so *clean.* -- nm - peggy ann mcamanda Oct 30, 09:59 2
        
        I just signed up last month with them -- their site is okay -- their news is really weak - Will Hunting Oct 30, 10:02 1
        
        I love how when you google a stock symbol, often the first result is yahoo finance. even google knows yahoo is king of free finance. -- nm - peggy ann mcamanda Oct 30, 10:04
  - IIRC, Fidelity scored abysmally on HRC's benefit guide for same sex couples (buy my 401K and a personal portfolio are with them) - ty97 Oct 30, 09:49 4
    - reminds me, I've got a small amount in a fidelity 401(k) from a previous job, I should probably do something with it. -- nm - znufrii Oct 30, 09:50 3
      - and once I get my new job, I'll need to figure out what to do with my current 401(k) as well... -- nm - znufrii Oct 30, 09:52 2
        
        wait until you get a new job and roll over current and old at once. -- nm - peggy ann mcamanda Oct 30, 10:17 1
        
        yup -- nm - znufrii Oct 30, 10:26
  - sure. and roll the old 401K into it. -- nm - Diva Oct 30, 09:47 1
    - well, just keep in mind if you do that, you may not be able to then roll the 401(k) money back out to another plan - decline Oct 30, 09:55
  - Get as much free money as you can. Usually this means taking advantage of employers' 401(k) match. - nubby Oct 30, 09:46 13
    - current employer matches $1.33 for every dollar in up to 6%.. i'm maxed there. the old 401k still is making money, has investment choices - colin Oct 30, 10:03 1
      - I would really just roll it over to save the hassle of logging in and checking, managing two accounts. - peggy ann mcamanda Oct 30, 10:06
    - Hijack. Say I give 4% more than my employer match percentage to my 401K. Should I put that 4% in a Roth IRA instead? -- nm - ty97 Oct 30, 09:47 10
      - It really depends - same thing as I said above about fees and investments - decline Oct 30, 09:58 3
        
        97, decline is a tax professional and is saying mostly what I said. -- nm - peggy ann mcamanda Oct 30, 10:03 2
        
        well more of a retirement professional - decline Oct 30, 10:15 1
        
        sorry. "97, decline is dollar sexy and is saying...." better? -- nm - peggy ann mcamanda Oct 30, 10:17
      - It depends on the conditions of the 401(k). Put your money where it will (a) grow the best and (b, if there's a tie) be as liquid as possible. -- nm - nubby Oct 30, 09:52 4
        
        I have a very good 401K program, many options, low costs. - ty97 Oct 30, 09:55 2
        
        you won't get much better investments choices than you have in your 401k -- nm - decline Oct 30, 10:00 1
        
        and I mean your employer specific one (not 401k in general) -- nm - decline Oct 30, 10:06
        
        Personally, the state operates on fixed-contribution, so I have zero choice. -- nm - nubby Oct 30, 09:53
      - I think yes, as you know. but I think it might depend on how aggressively you manage to your AGI. -- nm - peggy ann mcamanda Oct 30, 09:50

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Ok, Roth IRA time... tell me if I'm on target..

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