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Recent Traditional IRA questions

I am the sole beneficiary of my late mothers money market

I am the sole beneficiary of my late mothers money market account, and executor of her estate. When I visited the bank, they opened an estate account with funds from her saving and checking account. But, opened a Traditional IRA with the money market account, giving me basically no other option. When I questioned the opening of the IRA, the banker advised me that I could take a lump sum, but I would be hit with quite a high tax if I did so. Isn't a money market account just like a savings account? If so, why would it be taxed at such a high rate? Also, I realized that evening that I was not given any information regarding the IRA, not an account number, information sheet..nothing.

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TaxRobin

Vocational, Technical or Trade School

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There Lane. Jamie Eckard here again. I hope all is well

Hi there Lane. Jamie Eckard here again. I hope all is well your way. I have a client who has $22k in a traditional IRA and they want to convert to a Roth IRA. The client has the following items as far as income for 2016.W-2 - $13,000Interest - $2,100Dividends - $17,600 and $6,700 qualifiedCapital Gains - $15,000Social Security - $16,000 (taxable, she is only in her 30's, her husband passed away in 2013)My question is what would be the best way to make this transfer? Roll the amount over and just pay the tax? Or is there some other way to do this now?Thanks so much for your help.Jamie

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Lane

JD, MBA, CFP, CRPS

Doctoral Degree

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1. You are considering opening a bagel restaurant aimed

1. You are considering opening a bagel restaurant aimed primarily at the breakfast trade. You'll sell bagels, coffee, and other items in relatively fixed proportions to one another. For each bagel sold, you expect the company to sell two cups of coffee and $2 of other items. You'll earn $0.50 on each bagel, $0.50 on each cup of coffee, and $1.00 on the other items. Salaries, equipment, and rent cost about $100,000 per year. What is the break-even quantity of bagels?2. You are a financial planner who helps clients plan for retirement. Suppose one of your clients is 4 years away from retirement and has only $1,500 in pretax income to devote to either a Roth or traditional IRA. The traditional IRA permits investors to contribute the full $1,500 since contributions to these accounts are tax-deductible, but they must pay taxes on all future distributions. In contrast, contributions to a Roth IRA are not tax-deductible, meaning that at a tax rate of 17 percent, the investor is able to contribute only $1,245 after taxes; however, the earnings of a Roth IRA grow tax-free. Your company has decided to waive the one-time set-up fee of $25 to open a Roth IRA; however, investors opening a traditional IRA must pay the $25 set-up fee (in the first year only). Assuming that your client anticipates that her tax rate will remain at 17 percent in retirement and will earn a stable 8 percent return on her investments, will she prefer a traditional or Roth IRA?

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PDtax

Owner

Master's Degree

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I have an ira. at what age can i draw it out without having

i have an ira. at what age can i draw it out without having penalties? will i have to pay taxes on the amount withdrawn.?am i limited to the amount i can draw out at one time?

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bkb1956

Enrolled Agent, Paralegal

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4,850 satisfied customers
I have a regular IRA. If we are in our 40s and 50s, would it

I have a regular IRA. If we are in our 40s and 50s, would it make more sense to switch to a Roth IRA, pay the taxes now while we're still earning, and then get the tax free money later when our earning potential has diminished? What would be the tax burden now to switch it over? Is it a percentage or is there a penalty too?

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TaxRobin

Vocational, Technical or Trade School

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Roth IRA contribution questing wish to purchase house with

Roth IRA contribution questing wish to purchase house with down payment coming from Inherited IRA. Wish to take distribution of $50,000. AGI appears to be about $175,000 this year (2016) We have a Roth IRA with small monthly contributions of $200/mo. Are we up against Roth AGI limits and is there a way to avoid penalties?

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Lev

Retired

Bachelor's Degree Equivalent

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24,192 satisfied customers
I don't like my companies 401(K) plan and want know my

I don't like my companies 401(K) plan and want know my options regarding tax deferred retirement plans if I don't want to go through my employer.

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TaxRobin

Vocational, Technical or Trade School

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20,604 satisfied customers
I have question on investing children's(two - 8 and

I have question on investing for my children's(two - 8 and 10yrs old) college for the future. I am a non custodial parent on a long term disability. Is it advisable to save for their college through a 529 and/or a coverdell account vs saving for my future expenses in my later years? What is the best investing strategy? I have read from many sources that it is better to save for one's own retirement over college savings.

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Lane

JD, MBA, CFP, CRPS

Doctoral Degree

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16,764 satisfied customers
I inherited my husband's 401k so then I rolled it over to a

I inherited my husband's 401k so then I rolled it over to a traditional IRA. I am disabled so I am unable to work. I need to take some of it out. I just turned 50 with 1 dependent daughter. I need to know if I can take some out without paying the 10% penalty due to my disability.

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Rakhi Vasavada

Financial / Legal Advisor

Bachelor's Degree

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