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[Spartan]

Just now, Merabharathmahan said:

Would you recommend Fidelity for Roth IRA account opening? I don’t have any retirement account like 401k or any other. 

i see they have more transperancy of where they are putting money. anduke akkada petta..

[AlaElaAlaEla]

3 minutes ago, Spartan said:

401 on vanguard

roth on fidelity.

you get employer match on both ?

[Merabharathmahan]

Just now, Spartan said:

i see they have more transperancy of where they are putting money. anduke akkada petta..

Ok. so Fidelity better antara Roth IRA ki

[Spartan]

1 minute ago, AlaElaAlaEla said:

you get employer match on both ?

yeah. 75% on 401k 

[Spartan]

6 minutes ago, Merabharathmahan said:

Ok. so Fidelity better antara Roth IRA ki

i felt its better.

[user789]

43 minutes ago, msp_gsp said:

You should not use 2030. nee age chinnadhi kabatti  use 2045 or 2050 so you will get maximum refunds. You dont need to invest regularly. What I will do is I will put money in vanguard settlement account (Kind of savings account associated to roth IRA account) whenever I have excess money in savings account. When Market is down, transfer funds from settlement account to Retirement account. Please note you can always withdraw your contributions anytime without paying any penalty. 

You can withdraw these funds when you are 59. You can also withdraw if you are purchasing first home (Max 10000) or your kids college education.

Difference is Roth IRA is after tax money so you will not pay any taxes when you are withdrawing at 59. Traditional (401) is pretaxed money but you will pay taxes at 65 when you are withdrawing money

If IRA is taxed money, then how is different than keeping in savings account. What are he benefits of keeping money in Roth IRA ?

Can you pls explain in layman terms.

Is RothIRA tied to your comp/client ? or is it tied to your personal...

[Spartan]

5 minutes ago, user789 said:

If IRA is taxed money, then how is different than keeping in savings account. What are he benefits of keeping money in Roth IRA ?

Can you pls explain in layman terms

once u pay tax and put in ROTH IRA account,

u can invest in funds and get profit...that profit is also tax free when u are withdrawing.

ex: say u put 10K in ur Roth IRA after tax, and u invested in stocks or funds. and u gained 2K on it.

u dont need to pay tax for 2K when u withdraw. unlike in 401K u need to pay tax for whole 12K when u withdraw.

[user789]

If you are in India, then can you withdraw at 59/60 , so its tax free on the interest earned ? irrespective of your current/previous visa status in US?

[user789]

19 minutes ago, Spartan said:

once u pay tax and put in ROTH IRA account,

u can invest in funds and get profit...that profit is also tax free when u are withdrawing.

ex: say u put 10K in ur Roth IRA after tax, and u invested in stocks or funds. and u gained 2K on it.

u dont need to pay tax for 2K when u withdraw. unlike in 401K u need to pay tax for whole 12K when u withdraw.

There are mutual funds, individual bonds , cd's , ETF- What is the best option for us/indians ?

Stocks- is something which fluctuates and never consistent and it's more like gamble, unlike bonds, funds...correct? 

[Spartan]

8 minutes ago, user789 said:

There are mutual funds, individual bonds , cd's , ETF- What is the best option for us/indians ?

Stocks- is something which fluctuates and never consistent and it's more like gamble, unlike bonds, funds...correct? 

everything boils down to stocks only man...except Bonds.

[user789]

7 minutes ago, Spartan said:

everything boils down to stocks only man...except Bonds.

CD's is also like Bonds..isn't it.

[Spartan]

1 minute ago, user789 said:

CD's is also like Bonds..isn't it.

yeah kind of..but CDs pay a better rate than Bonds

[user789]

CD's and Bond's are safest bet. Like FD in India...

MF- is based on stock market, returns bit higher but not guaranteed...

Also, all the interest earned goes back to RothIRA and its advantageous if withdrawn after 60.

If we are india then Do we pay taxes for US and India for the interest earned from Roth IRA? or only US...

[Spartan]

Just now, user789 said:

CD's and Bond's are safest bet. Like FD in India...

MF- is based on stock market, returns bit higher but not guaranteed...

Also, all the interest earned goes back to RothIRA and its advantageous if withdrawn after 60.

If we are india then Do we pay taxes for US and India for the interest earned from Roth IRA? or only US...

u already paid the tax for that money in US...

[pistaUncle]

1 hour ago, Merabharathmahan said:

Any one contributing to Roth IRA out side employer. can we open it in bank or is it supposed to be through fidelity or vanguard. ippudu tax bracket qualified but if tax bracket is more after few months like if wife also works in future then high tax bracket lo padutam kada then not eligible to contribute then what happens to account. 

Roth IRA can be opened at many financial institutions ,brokerage firnms, banks etc (citibank, etarde, fidelity, vanguard etc etc). Please note once you have an account and contributed money it stays , whether you contribute every year or not.

Just to clarify Roth IRA is based on AGI and not on tax bracket, if you contribute to Roth IRA and are ineligible due to higher AGI (both spouses working or you got  $200K bonus :)) etc , you will have to pay penalty of 6% on ineligible contribution and file form 5329 along with with your taxes

Roth IRA contributions for Year 2018 can be made until 2019 tax fiiing date, similary for 2019 it will be until 2020 tax filing date.   So if you think your AGI is going to be higher than cutoff limit for the tax year do not contribute until you calculate your AGI and your eligibility.  If you know for sure your AGI is going to be less that cutoff limit go ahead and contribute during the year.

safe bet would be keep putting money aside which you want to contribute to Roth IRA and do a mid year and or end of year calculation and then make contribution to avoid ineligible penalties.

fidelity, vanguard all these sites will have full on faq on roth ira and knowledge articles

all the best