401k roll over to IRA/ ROTH IRA

[jersey babai]

DBians,

Evarina 401k,IRA's meda knowledge vunna vallu, please advise.

I changed my employer.

With old employer I used to have 401k option, but kotha employer daggara 401k option ledu.

So, I am planing to roll over the old 401k to IRA/ ROTH IRS or anything of that sort.

But, by some research I understood IRA/ ROTH IRA ithey only we can contribute 6k per annum. Is that true?

Is there any other option to contribute more? (example: 401k ki 18k per annum kada)

What is the best thing you suggest, if there is any other option. Naku bokkka bhi idea ledu ilantivi.

 

Thanks,

BABUU.

 

[Butterthief]

1 minute ago, jersey babai said:

DBians,

Evarina 401k,IRA's meda knowledge vunna vallu, please advise.

I changed my employer.

With old employer I used to have 401k option, but kotha employer daggara 401k option ledu.

So, I am planing to roll over the old 401k to IRA/ ROTH IRS or anything of that sort.

But, by some research I understood IRA/ ROTH IRA ithey only we can contribute 6k per annum. Is that true?

Is there any other option to contribute more? (example: 401k ki 18k per annum kada)

What is the best thing you suggest, if there is any other option. Naku bokkka bhi idea ledu ilantivi.

 

Thanks,

BABUU.

 

Ltt

[jersey babai]

thank you bhayya

[AryaD]

1 minute ago, jersey babai said:

DBians,

Evarina 401k,IRA's meda knowledge vunna vallu, please advise.

I changed my employer.

With old employer I used to have 401k option, but kotha employer daggara 401k option ledu.

So, I am planing to roll over the old 401k to IRA/ ROTH IRS or anything of that sort.

But, by some research I understood IRA/ ROTH IRA ithey only we can contribute 6k per annum. Is that true?

Is there any other option to contribute more? (example: 401k ki 18k per annum kada)

What is the best thing you suggest, if there is any other option. Naku bokkka bhi idea ledu ilantivi.

 

Thanks,

BABUU.

 

IRA and Roth IRA max limit is $5500 for 2016 . Understand the terms very carefully in Traditional IRA. You have to pay penalty if you want to withdraw the contributions from traditional Ira where as in Roth IRA you can withdraw whenever you want . In my opinion Roth IRA is best for us . 

[AryaD]

Even I am planning to open Roth IRA account this week .

[jersey babai]

1 minute ago, AryaD said:

IRA and Roth IRA max limit is $5500 for 2016 . Understand the terms very carefully in Traditional IRA. You have to pay penalty if you want to withdraw the contributions from traditional Ira where as in Roth IRA you can withdraw whenever you want . In my opinion Roth IRA is best for us . 

Point noted. Thanks bro.

So, 5500 is the max we can contribute kada?

Also, it is Post tax money kada?

Is those contribution can be tax exempt at the end of the year for tax returns?

[AryaD]

One more option to contribute is to open a HSA account to contribute 3600 per year . If you are planning for kids it is very good option to contribute 8k for 2 years .

[kran]

1 minute ago, jersey babai said:

Point noted. Thanks bro.

So, 5500 is the max we can contribute kada?

Also, it is Post tax money kada?

What is the point in putting money, post tax, in IRA, when the employer is not contributing anything? You can just invest that money in mutual funds or stocks on your own no?

[AryaD]

For traditional IRa you don't pay the tax now but you will pay at the time of withdrawal . If you withdraw before you turn into 70 years you need to pay tax for your contributions and 10% penalty , but if you withdraw at the age of 70 years you just pay tax for your contributions .

In Roth IRA you pay tax upfront and you don't get tax exemption .

 

[AryaD]

1 minute ago, kran said:

What is the point in putting money, post tax, in IRA, when the employer is not contributing anything? You can just invest that money in mutual funds or stocks on your own no?

Capital gains on Roth IRA and Ira is tax exempted but not in case of regular trading account .

[jersey babai]

6 minutes ago, kran said:

What is the point in putting money, post tax, in IRA, when the employer is not contributing anything? You can just invest that money in mutual funds or stocks on your own no?

it have some advantages anta

[jersey babai]

4 minutes ago, AryaD said:

Capital gains on Roth IRA and Ira is tax exempted but not in case of regular trading account .

thanks bro. 

[jersey babai]

8 minutes ago, AryaD said:

For traditional IRa you don't pay the tax now but you will pay at the time of withdrawal . If you withdraw before you turn into 70 years you need to pay tax for your contributions and 10% penalty , but if you withdraw at the age of 70 years you just pay tax for your contributions .

In Roth IRA you pay tax upfront and you don't get tax exemption .

 

Also for ROTH IRA, early withdrawal ki 10% penalty?

[kran]

1 hour ago, jersey babai said:

Also for ROTH IRA, early withdrawal ki 10% penalty?

ROTH IRA early withdrawal ki no penalty.

[AryaD]

1 hour ago, jersey babai said:

Also for ROTH IRA, early withdrawal ki 10% penalty?

For capital gains yes , but for contributions answer is "no "