Manu
05-04-2004, 02:09 AM
What are the differences between Roth and Traditional IRAs? What are the pros and cons of both?
|
View Full Version : Roth IRA vs. Traditional IRA Manu 05-04-2004, 02:09 AM What are the differences between Roth and Traditional IRAs? What are the pros and cons of both? Robin ® 05-04-2004, 09:10 AM Roth IRA contributions are post-tax. Traditional IRA contributions are pre-tax. When you start withdrawing from your ROTH, that money is not taxed as income. However, when you start withdrawing from a Traditional, it is taxable income. IFF 05-04-2004, 10:11 AM what is an IRA in the sense of the word that it's b eing used here h2g2Fan 05-04-2004, 10:23 AM Individual Retirement Arrangement igofast 05-04-2004, 04:33 PM Roth all the way. You pay taxes now, but you can make as much profit as you want tax free! Manu 05-04-2004, 05:15 PM What are the income cap levels for both? Max contributions? Early take out penalties? 92Notch 05-04-2004, 11:18 PM Originally posted by Manu What are the income cap levels for both? Max contributions? Early take out penalties? A combination of the two can not exceed $3k /year ($3.5k /year if your over 50) (I think) Try www.fool.com .... good source for info. Igo .... Traditional may be better ... depends on how much income you have when you are retired .... (both are under the shelter while trading.) Chris 05-05-2004, 08:27 AM Originally posted by h2g2Fan Individual Retirement Arrangement Spab got all excited for nothing Manu 05-05-2004, 07:59 PM Yeah, I think the traditional also has an easier time taking money out for property investments. jwreck 05-06-2004, 02:49 PM Originally posted by Chris Spab got all excited for nothing LOL. 302Riz 05-08-2004, 07:27 AM I want to invest in an IRA so Im able to buy a house in 3 years. I know you are allowed to take out money from your IRA tax-free one time to buy a house. 92Notch 05-08-2004, 11:06 AM Originally posted by 302Riz I want to invest in an IRA so Im able to buy a house in 3 years. I know you are allowed to take out money from your IRA tax-free one time to buy a house. I was going to go that route too, champ. Check into it. I believe you are limited to taking out $10k penalty free for the first house.... the account has to be five years old to take the money out ... and you will pay taxes on the money (unless it's a roth), but the 10% hit for taking money out before 59.5 will be waved. .... I opted to use US savings bonds to save for a house, I've got more then $10k and I do not have to worry about all the other rules and crap. But I'm a dumbass, so you may want to read up on it yourself, killa: :) http://www.fool.com/money/allaboutiras/allaboutiras12.htm 302Riz 05-08-2004, 01:55 PM Originally posted by 92Notch I was going to go that route too, champ. Check into it. I believe you are limited to taking out $10k penalty free for the first house.... the account has to be five years old to take the money out ... and you will pay taxes on the money (unless it's a roth), but the 10% hit for taking money out before 59.5 will be waved. .... I opted to use US savings bonds to save for a house, I've got more then $10k and I do not have to worry about all the other rules and crap. But I'm a dumbass, so you may want to read up on it yourself, killa: :) http://www.fool.com/money/allaboutiras/allaboutiras12.htm Word to your motha :cool: Ill read it later with my girlfriend. :) |