Deleted
Joined: Apr 16, 2024 3:23:51 GMT -5
Posts: 0
|
Post by Deleted on Jan 27, 2020 17:01:24 GMT -5
Anyone have a suggestion for where to open a ROTH IRA?
I did some reading last night. Am I correct that I can deposit the full 7K (I'm 50) as long as my self-employment income was >7K for the year?
Also, can I deposit $14K at one time and have it be the 7K for 2019 and 7K for 2020?
If I buy CDs with the rest of my long-term savings in such a way that I will be able to cash out 7K each year when they reach maturity, can I do that and then move the cash into the ROTH each January?
And, yes, I will also have money in an emergency fund to deal with things that pop up with my house, truck, etc... I'm just trying to make a plan for the portion of the money from my house I have earmarked for retirement.
|
|
Deleted
Joined: Apr 16, 2024 3:23:51 GMT -5
Posts: 0
|
Post by Deleted on Jan 27, 2020 17:07:43 GMT -5
Vanguard, Fidelity and Charles Schwab are who I deal with and they're all very similar and easy to set up accounts with and do everything online. I've only dealt with customer service at Vanguard and they were very helpful. They'd walk you through opening your account and choosing a fund if you're not comfortable doing it on your own.
And yes, you can do the full 14K today, as long as it's before April 15th you have the 2019 contribution option open. You specify when you contribute what year you want the money to go towards. They keep track, so if you have everything with one it will tell you you have X amount of space left for 2019 and X amount for 2020.
|
|
haapai
Junior Associate
Character
Joined: Dec 20, 2010 20:40:06 GMT -5
Posts: 5,876
|
Post by haapai on Jan 27, 2020 18:58:40 GMT -5
Vanguard.
|
|
schildi
Well-Known Member
3718 and no text
Joined: Jan 14, 2011 1:38:58 GMT -5
Posts: 1,799
|
Post by schildi on Jan 27, 2020 19:34:26 GMT -5
Fidelity.
|
|
teen persuasion
Senior Member
Joined: Dec 20, 2010 21:58:49 GMT -5
Posts: 4,037
|
Post by teen persuasion on Jan 27, 2020 21:11:39 GMT -5
Ours are at Vanguard.
Would you be eligible for the Retirement Saver's credit?
|
|
Deleted
Joined: Apr 16, 2024 3:23:51 GMT -5
Posts: 0
|
Post by Deleted on Jan 27, 2020 22:40:08 GMT -5
Ours are at Vanguard. Would you be eligible for the Retirement Saver's credit? Yes. They will net me $1K for each year which I believe will off-set the taxes I pay. While we hear all about people being low income and not paying taxes, mine tend to be about $1500 per 10K earned. |
|
Deleted
Joined: Apr 16, 2024 3:23:51 GMT -5
Posts: 0
|
Post by Deleted on Jan 27, 2020 22:50:58 GMT -5
Ours are at Vanguard. Would you be eligible for the Retirement Saver's credit? Yes. They will net me $1K for each year which I believe will off-set the taxes I pay. While we hear all about people being low income and not paying taxes, mine tend to be about $1500 per 10K earned. They usually have dependent kids. |
|
Deleted
Joined: Apr 16, 2024 3:23:51 GMT -5
Posts: 0
|
Post by Deleted on Jan 27, 2020 22:58:36 GMT -5
Ours are at Vanguard. Would you be eligible for the Retirement Saver's credit? Yes. They will net me $1K for each year which I believe will off-set the taxes I pay. While we hear all about people being low income and not paying taxes, mine tend to be about $1500 per 10K earned.How does that work? For a single filer the first 21,700 AGI produces a tax obligation of $970, not 3K. If you're making more than that you don't qualify for the 50% Savers Credit because the cutoff is $19,250. |
|
teen persuasion
Senior Member
Joined: Dec 20, 2010 21:58:49 GMT -5
Posts: 4,037
|
Post by teen persuasion on Jan 27, 2020 23:23:54 GMT -5
Yes. They will net me $1K for each year which I believe will off-set the taxes I pay. While we hear all about people being low income and not paying taxes, mine tend to be about $1500 per 10K earned.How does that work? For a single filer the first 21,700 AGI produces a tax obligation of $970, not 3K. If you're making more than that you don't qualify for the 50% Savers Credit because the cutoff is $19,250. SE tax? Not sure if credits can reduce that, though. |
|
phil5185
Junior Associate
Joined: Dec 26, 2010 15:45:49 GMT -5
Posts: 6,409
|
Post by phil5185 on Jan 28, 2020 0:19:30 GMT -5
The most important decision is WHAT to invest the $7000 per yr in for the next 15 years. At 0% you will have $105000. At 11% you will have about $270000. Compound interest is a big deal.
|
|
tcu2003
Senior Member
Joined: Dec 31, 2010 15:24:01 GMT -5
Posts: 4,940
|
Post by tcu2003 on Jan 28, 2020 13:47:49 GMT -5
We have ours at Vanguard - as others have mentioned, they’re easy to use and we do everything online.
|
|
|
|
Post by The Walk of the Penguin Mich on Jan 28, 2020 14:24:42 GMT -5
How does that work? For a single filer the first 21,700 AGI produces a tax obligation of $970, not 3K. If you're making more than that you don't qualify for the 50% Savers Credit because the cutoff is $19,250. SE tax? Not sure if credits can reduce that, though. State tax? |
|
Deleted
Joined: Apr 16, 2024 3:23:51 GMT -5
Posts: 0
|
Post by Deleted on Jan 28, 2020 15:00:57 GMT -5
SE tax? Not sure if credits can reduce that, though. State tax? Yeah, could be. OR has crazy high income taxes by the looks of it.  |
|
Deleted
Joined: Apr 16, 2024 3:23:51 GMT -5
Posts: 0
|
Post by Deleted on Jan 28, 2020 15:13:04 GMT -5
SE tax? Not sure if credits can reduce that, though. State tax? Self-employment tax. All of my income is freelance or from my own business. |
|
Deleted
Joined: Apr 16, 2024 3:23:51 GMT -5
Posts: 0
|
Post by Deleted on Jan 28, 2020 15:29:51 GMT -5
Self-employment tax. All of my income is freelance or from my own business. The Saver's Credit won't be able to be applied to reduce what you pay in SS and medicare, best you can hope for is $750 towards Federal, but every bit helps. |
|
