Roth IRA

[krrish]

Household income MAGI 240k minchite, can’t contribute to Roth IRA kada, daniki backdoor option undi kada, evaraina try chesara? Pros and cons enti? Mari 20k taxes kattalanta ippude file chestunnappudu? Need to reduce taxable income, no deductions, only standard with US citizenship…Enlighten DB bros

[Spartan]

last year start chesa...backdoor megaroth. (FYI it is different from IRA Roth)

danito taxable income em reduce kaadu in present scenario..

but it will be handy down the lane..

 

https://investor.vanguard.com/investor-resources-education/article/how-to-set-up-backdoor-ira

[allbakara]

6 minutes ago, krrish said:

Household income MAGI 240k minchite, can’t contribute to Roth IRA kada, daniki backdoor option undi kada, evaraina try chesara? Pros and cons enti? Mari 20k taxes kattalanta ippude file chestunnappudu? Need to reduce taxable income, no deductions, only standard with US citizenship…Enlighten DB bros

Below that limit unte entha % or amounts varaku contribute cheyochu bro to 401k and roth ira

[perugu_vada]

9 minutes ago, Spartan said:

last year start chesa...backdoor megaroth. (FYI it is different from IRA Roth)

danito taxable income em reduce kaadu in present scenario..

but it will be handy down the lane..

 

https://investor.vanguard.com/investor-resources-education/article/how-to-set-up-backdoor-ira

@Spartan Uncle what is this Roth IRA and the one u are saying ? Konchem layman terms lo cheppsva ? Need not be elaborated .. 

[Spartan]

10 minutes ago, perugu_vada said:

@Spartan Uncle what is this Roth IRA and the one u are saying ? Konchem layman terms lo cheppsva ? Need not be elaborated .. 

typical ga u either do 401K  or Roth IRA.

- 401K - pre-tax money (contribution limit - 27500) - you pay tax when you withdraw after retirement. (mandyalo to teste tax +penalties) - No Salary Cap

- ROTH IRA - post tax money (contribution limit - 7000) - all growth is tax free when u withdraw after retirement. - Salary Cap paina cheppinattu. If above that you cannot do, ROTH IRA.

so with above two...u either save 27K+Empl matching (if any). ---- or ROTH 7K+Employer matching..

--

Megabackdoor lo.... you can go upto 69K everything goes into 401-IRA and it works similar to ROTH IRA. (Tax free growth and withdrawls)..

for this to happen you need to have your 401k plan allow to do that.

https://www.nerdwallet.com/article/investing/mega-backdoor-roths-work

 

 

[perugu_vada]

6 minutes ago, Spartan said:

typical ga u either do 401K  or Roth IRA.

- 401K - pre-tax money (contribution limit - 27500) - you pay tax when you withdraw after retirement. (mandyalo to teste tax +penalties) - No Salary Cap

- ROTH IRA - post tax money (contribution limit - 7000) - all growth is tax free when u withdraw after retirement. - Salary Cap paina cheppinattu. If above that you cannot do, ROTH IRA.

so with above two...u either save 27K+Empl matching (if any). ---- or ROTH 7K+Employer matching..

--

Megabackdoor lo.... you can go upto 69K everything goes into 401-IRA and it works similar to ROTH IRA. (Tax free growth and withdrawls)..

for this to happen you need to have your 401k plan allow to do that.

https://www.nerdwallet.com/article/investing/mega-backdoor-roths-work

 

 

So all plans ki money can be taken out after 65+ ? Excess amount unna kuda after 65 ki theskovatam ante waste emo 

[Spartan]

1 minute ago, perugu_vada said:

So all plans ki money can be taken out after 65+ ? Excess amount unna kuda after 65 ki theskovatam ante waste emo 

yes

how much annual income do you need when u retire to afford current living standards. plan that accordingly.

[krrish]

Employer provided 401k fidelity lo in-plan roth conversion allow chestunnadu, in thqt case, megqdoor roth valla use emi ledu kada?

[mettastar]

Kids peru meda RoTH IRA chesara evaranna?

[Mr Mirchi]

1 hour ago, krrish said:

Employer provided 401k fidelity lo in-plan roth conversion allow chestunnadu, in thqt case, megqdoor roth valla use emi ledu kada?

roth conversion chesaka ventena tax free ga thisukovacha or still 60 yrs dhaka wait cheyala

[Mr Mirchi]

is this true

 

 

Yes, you can convert a 401(k) to a Roth IRA, but you'll need to pay taxes on the converted amount in the year of conversion. However, once the money is in a Roth IRA, withdrawals in retirement are generally tax-free if certain conditions are met. 

[Marsmangalodu]

Principal(amount you put) can be withdrawn from roth ira tax free not the gains..gains will be less taxes after retirement as you wont be employed then

[krrish]

1 hour ago, Mr Mirchi said:

is this true

 

 

Yes, you can convert a 401(k) to a Roth IRA, but you'll need to pay taxes on the converted amount in the year of conversion. However, once the money is in a Roth IRA, withdrawals in retirement are generally tax-free if certain conditions are met. 

Yes

[krrish]

10 minutes ago, Marsmangalodu said:

Principal(amount you put) can be withdrawn from roth ira tax free not the gains..gains will be less taxes after retirement as you wont be employed then

In roth, principal and gains are all tax-free. That is the whole concept of roth.

[krrish]

1 hour ago, Mr Mirchi said:

roth conversion chesaka ventena tax free ga thisukovacha or still 60 yrs dhaka wait cheyala

Need to be 59.5 and above, otherwise pay penalty