Make '23 IRA contrib 4/15 (by BRAD 20,000 [IN]) Apr 12, 2024 12:02 AM
(by WMH [NC]) Apr 12, 2024 9:50 AM
(by 6x6 [TN]) Apr 12, 2024 6:21 PM
(by Mark [AL]) Apr 12, 2024 7:23 PM
(by WMH [NC]) Apr 13, 2024 12:27 PM
(by 6x6 [TN]) Apr 14, 2024 6:36 PM
(by BRAD 20,000 [IN]) Apr 14, 2024 11:06 PM
(by 6x6 [TN]) Apr 15, 2024 5:30 PM
(by Homer [TX]) Apr 15, 2024 9:55 PM
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Make '23 IRA contrib 4/15 (by BRAD 20,000 [IN]) Apr 12, 2024 12:02 AM Message:
Just a reminder for those interested in Self Directed IRA/401K. You can make a 2023 contribution until April 15.
If you have a new account your can contribute your '23 amount AND immediately a '24 contribution - giving you a great headstart on the account.
Over 55?? allows a much higher contribution.
Knowledge is power.
Timing matters.
BRAD
--73.103.xxx.xxx |
Make '23 IRA contrib 4/15 (by WMH [NC]) Apr 12, 2024 9:50 AM Message:
Too old to contribute :(
But we are going to convert our Self-directed IRA property to a Roth-owned one. Just trying to figure out do we convert all of it this year and take the hit both from taxes *and* Medicare or convert one half this year and one next. Waiting on CPA advice. --173.28.xx.xxx |
Make '23 IRA contrib 4/15 (by 6x6 [TN]) Apr 12, 2024 6:21 PM Message:
How and when did IRA's get started?
Why did they get started?
Is it the government that offers them?
Why would the government or anyone else offer this?
What do they have to gain?
If it is such a great deal, why are there rules on the contribution?
Is knowledge power if you don't use it? --76.129.xxx.xx |
Make '23 IRA contrib 4/15 (by Mark [AL]) Apr 12, 2024 7:23 PM Message:
It takes some pressure off of Social Security to provide in retirement .I remember when it was $1500. Now ,it's $7500 for 59 and over
--143.59.xxx.xx |
Make '23 IRA contrib 4/15 (by WMH [NC]) Apr 13, 2024 12:27 PM Message:
Before they were offered, back in the day people had to rely on their company-provided pensions and SS for retirement.
People were trapped at their jobs as they could lose their pensions if they changed, and pension funds were difficult to manage for the company! A lot of people lobbied to control their own financial destinies as pensions started to become a thing of the past, and the 401k was a compromise: people could save and invest in their own future, with companies providing the investing tools. 401ks are converted to IRAs when you leave a company plan.
Traditional 401ks, the first iterations, were tax-advantaged in that you only paid tax on your income that year AFTER you paid into your 401k - it lowered taxable income for that year - so they put limits on how much you could contribute each year. Tough to save enough for retirement but it helped, and it grows tax-free so if you were a very savvy investor you could grow it (most aren't.)
AND you pay tax on those dollars when you take them out during retirement. AND after a certain age you HAVE to start taking it out and paying the taxes. It's called Required Minimum Distribution "RMDs."
As time went on, ROTHs were introduced and with those, you contributed after-tax dollars and contribution limits were raised. You pay tax on the dollars before they go in, regular payroll taxes, but it grows tax-free and you do not pay taxes when you take it out - you already paid them when you put it in.
ROTHs are far better overall but they were only just being introduced when we were leaving our W2 jobs, so most of our retirement is in Traditional IRAs.
You can convert a traditional to a ROTH but you have to pay the taxes that year on however much you convert but you don't have to pay later when you take it out.
Clear as mud? --173.28.xx.xxx |
Make '23 IRA contrib 4/15 (by 6x6 [TN]) Apr 14, 2024 6:36 PM Message:
Thank you, WMH. Seems to me that if a person where to just put money into a CD, Money Market, and/or savings account, that it would serve the same purpose and you could put in as much as you wanted? --76.129.xxx.xx |
Make '23 IRA contrib 4/15 (by BRAD 20,000 [IN]) Apr 14, 2024 11:06 PM Message:
Short version:
Open a ROTH IRA. Must have "earned income".
Under age 50: contribute up to $6500 for '23 on or before April 15, 2024. Can contribute up to $7000 for 2024 = $13,500 capital in your account.
Age 50+ contribute $7500 on or before April 15, 2024 for 2023 + $8000 in 2024 = $15,500 capital to work with.
Now, use SOME of it as downpayment. You do not need to pay cash for the prop.
As self employed I actually now use SEP 401K ROTH. Entry contributions are MUCH higher, do not need earned income, and are "safer" from IRS rules.
This is one way the rich KEEP their money and avoid taxes.
BRAD --73.103.xxx.xxx |
Make '23 IRA contrib 4/15 (by 6x6 [TN]) Apr 15, 2024 5:30 PM Message:
Thank you, Brad --76.129.xxx.xx |
Make '23 IRA contrib 4/15 (by Homer [TX]) Apr 15, 2024 9:55 PM Message:
Gotta have earned income to contribute to an IRA. My CPA has all my income as unearned. ) --66.169.xxx.xxx |
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