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Quick (and probably easy) question. I'm a graduate student with ~10k in savings and I'd like to open a Roth IRA. I already completed my tax return and I want to make sure I'm not doing anything stupid. If I contribute before April 15th (this would count for last year) I won't have to redo my taxes or anything, correct? I'm assuming since anything put in the Roth IRA is already taxed (and I already paid/received money based on this) I should be able to do whatever with the money. Furthermore, since that contribution is for last year, after April 15th I should be able to do an additional contribution for this year, right?
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Mar 17, 2011 20:15
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| # ¿ May 14, 2024 00:11 |
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|Ziggy| posted:Yes, roths are already taxed so it won't affect your taxes. You can contribute for 2010 from Jan 1 2010-April 15 2011. You an contribute for 2011 from Jan 1 2011-April 15 2012. So you can do them both now, you don't have to wait until after April 15th. Glad everything I read sunk in. Thanks!
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Mar 17, 2011 20:27
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Eggplant Wizard posted:One thing just in case, from one grad student to another. If you are/were on a fellowship or scholarship in 2011 or 2010, that does not count as earned income. You may not contribute more than each year's earned income to a Roth IRA, so if last year you TA'd or RA'd but only made $3000, even if you had a $20k fellowship, you can only contribute up to $3000. Thanks for the heads up. I should be in the clear though.
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Mar 18, 2011 02:18
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w.r.t. TreasuryDirect: I've noticed that 1Password, if used to autofill the username, will autofill the password before the client-side javascript blocks the ability to do that. Not sure if other password managers do this, but I've never had to use the awful keyboard thing.
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Jan 21, 2022 17:54
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Motronic posted:That's great if it works, and I immediately wanted to try it out but just lol: lol at least they're committed to the bit
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Jan 21, 2022 20:04
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I keep telling myself I'll backdoor my traditional IRA but I read about the pro rata rule and my eyes glaze over and I think "well, maybe next month".
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Apr 1, 2022 16:10
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sheri posted:That's where I am at right now 😬😬 From what I understand, if you have $0 in traditional IRAs now, it's very easy. Once I passed the limit I just switched to doing a trad IRA instead and have enough (???) money in there now that I'm afraid of the taxes I'd incur. I've heard that some 401ks let you rollover a trad IRA -> 401k, although they aren't common. Hoping I can do that since past/current employer have changed providers but I'm not too optimistic. I might just give up with the knowledge that this is a Good Problem™ to have.
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Apr 1, 2022 16:27
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runawayturtles posted:You're probably better off not contributing to an IRA at all if you're over the Roth limit and not backdooring. Just use a regular taxable account instead. But rolling an IRA into a 401k is not that uncommon and definitely worth it if you can, to re-enable the backdoor option (edit: assuming your 401k investment options are decent). I guess just because I'm not getting any tax benefit so it's better to have something I can sell whenever I'd like? And more flexible investment options? raminasi posted:Fun fact about this: I did this this year as part of an old 401k rollover. It had both trad and Roth components, so I rolled them into IRAs, and then the trad IRA directly into my current 401k. I also this year did a normal backdoor Roth, but made sure to do it at a different time during the year, so that the tIRA never had commingled funds in it, thinking that I wouldn't trip over the pro rata rule. $5 sounds like a magic bullet to me! On that note, just got HR confirmation that I can do the rollover with the new plan  .
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Apr 1, 2022 22:36
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Ersatz posted:I've never understood why it's in percentages instead of dollars to begin with. Who benefits from that, and how? My company recently switched to requiring %ages instead of fixed dollar amounts and the rationale was to make it easier to have a default, non-zero value for contributing for employees. Seems reasonable, but unsure why we can't have both ¯\_(ツ)_/¯.
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Jan 6, 2023 21:17
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I have Fidelity at work and previously was 100% in on SSDLX, the 2050 target retirement fund. I'd turn 63 that year. I'd like to switch to something a bit more aggressive and with lower expense ratios. Our work funds don't include the Fidelity equivalents for VTSAX, so I'm approximating the US total market fund. Here's my current proposed allocation:
Highest expense ratio on those is 0.035%, while before the target fund had 0.2%. Seem fairly reasonable?
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Mar 27, 2024 15:51
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drk posted:If you can get FSMAX (extended market fund), that is a better pairing for FXAIX than holding a mid and small cap fund. No FSMAX sadly, but thanks for the second pair of eyes. My partner has New York Life Investments and the fund options seem a bit worse. I tried to compare comparable-ish funds to my Fidelity and Vanguard funds to see if she can get her company to switch: pre:Fund Company ER 2050 Target (SSDLX) Fidelity 0.200% 2050 Target (VFIFX) Vanguard 0.080% 2050 Target (XXXXX) NYLI N/A S&P 500 IDX (FXAIX) Fidelity 0.015% S&P 500 IDX (FVIAX) Vanguard 0.040% S&P 500 IDX (MSPIX) NYLI 0.270% US Large Cap (FSPGX) Fidelity 0.035% US Large Cap (VLCAX) Vanguard 0.050% US Large Cap (IQSU) NYLI 0.100% US Mid Cap (FXMDX) Fidelity 0.025% US Mid Cap (VIMAX) Vanguard 0.050% US Mid Cap (IQSM) NYLI 0.190% US Small Cap (FSSNX) Fidelity 0.025% US Small Cap (VSMAX) Vanguard 0.050% US Small Cap (CSML) NYLI 0.360% INTL (FSPSX) Fidelity 0.035% INTL (VTIAX) Vanguard 0.120% INTL (IQSI) NYLI 0.160% US Bond Index (FXNAX) Fidelity 0.025% US Bond Index (VBTLX) Vanguard 0.050% US Bond Index (MTMSX) NYLI 0.530% Also, this is for a SIMPLE IRA, rather than a 401k. Not sure how that changes things. I do believe there's some kind of match, but I'll double check. With these ERs, should she consider maxing it out (to reduce income)? Or just hit the match and put the rest in taxable funds? Edit: Forgot to add the Small Caps in there, and man NYLI's ER there is quite a bit worse than the others. Not sure what to do now tbh. defmacro fucked around with this message at 14:10 on Mar 28, 2024 |
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Mar 28, 2024 14:00
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| # ¿ May 14, 2024 00:11 |
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Makes sense, thanks!
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Mar 28, 2024 15:42
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