Comments on: Are Roth IRA Contributions Tax Deductible?

By: Jeff Rose

Jeff Rose — Thu, 01 Feb 2018 16:28:01 +0000

In reply to Gio. Thanks for watching, Gio!!

By: Gio

Gio — Wed, 31 Jan 2018 23:57:12 +0000

I came here on accident, and at the end of the article, i realized my Youtube ‘friend’ Jeff is the one who wrote the article? Man, I love your Youtube videos. If no one has seen them, you are missing out on great financial advice! Thank you for your contribution to everyone’s wealth, Jeff! Many blessings to you, and your family

By: Brad

Brad — Fri, 17 Feb 2017 11:37:06 +0000

Waited a bit too late this year to convert from Traditional to Roth. 2016 would have been a prime year, due to low income from unemployment. Tried the 1st of January, but they could not convert, since it was not filed by Dec. 31st. My accounting friend though they still could, but I intend to this year, even though it may cost a few more dollars tax.

I think 20 years ago, traditional was OK, but I’d never go that route now.
Thanks for clearing up some things, and all your insight on Roth IRAs. Since I’m over 59.5, it will be a smart move for me this year!!

Thx Jeff!!

By: Jeff Rose

Jeff Rose — Wed, 14 Dec 2016 21:10:25 +0000

In reply to Norman. Hi Norman - You can, and the conversion will be potentially taxable, depending on your tax situation. The benefit would be that you will be able to make tax free withdrawals once the money has been converted. Since you are over 59.5, you will not need to pay tax on the withdrawals of principal, though investment income will be taxable for five years. No penalty in either case though, due to your age.

By: Norman

Norman — Fri, 02 Dec 2016 16:34:06 +0000

At age 78, can I convert a Traditional IRA (balance around 36K) to a Roth IRA? If so, what would be the advantage of doing so? Would I have to pay taxes on the amount converted?

By: Jeff Rose

Jeff Rose — Mon, 29 Aug 2016 02:42:04 +0000

In reply to PatientWealthBuilder. In addition to the fact that not everyone has a focus on retirement planning. That's what I'm trying to do on this blog - raise awareness of both the challenges of retirement planning, and the many options available.

By: PatientWealthBuilder

PatientWealthBuilder — Fri, 01 Apr 2016 01:40:42 +0000

Good advice to open a Roth IRA with an online brokerage account. Why are so many people relying on social security when they can take control of their finances by opening their own brokerage account and investing in ETFs and forgetting about it for 10, 20, 30, or even 40 years? There are plenty of books and helpful blogs like your own which explain these matters. I think there are a lot of people who just want that shiny new car rather than to carefully plan their financial future!

By: Investment Hunting

Investment Hunting — Fri, 25 Mar 2016 07:14:26 +0000

There really are no income limits for Roth contributions. There are just two ways to open Roth Accounts. If you earn more than the Roth allowable limit you can do a backdoor Roth Conversion. This is the same thing but with a few more steps.

1 – Open and IRA
2 – Request an IRA to Roth IRA conversion
3 – Start investing

It’s so simple. I do this every year without talking to anyone, it’s and option of my broker. I just make the change online.

By: Emily

Emily — Wed, 03 Feb 2016 00:36:26 +0000

If you are in the 25% tax bracket, you only pay 25% on the portion of your income that falls into the 25% bracket. The rest of your income will be taxed at the bracket it falls into. The oversimplification may have been used for simplicity, but it should be noted somewhere that it is an oversimplification.

By: Bradleybrown

Bradleybrown — Fri, 31 May 2013 10:44:51 +0000

Yes, anybody is able to take all their traditional IRA’s and old retirement plans and convert them to a Roth IRA. The amount you convert will be taxed, but it still can be an attractive move for those that feel that the deductions are going nowhere but up.