Comments on: Retirement Plan Rollover Chart http://www.getrichslowly.org/blog/2008/04/24/retirement-plan-rollover-chart/ personal finance that makes cents Fri, 16 May 2008 07:54:41 +0000 http://wordpress.org/?v=2.5.1 By: Rachel http://www.getrichslowly.org/blog/2008/04/24/retirement-plan-rollover-chart/#comment-130825 Rachel Mon, 05 May 2008 18:54:16 +0000 http://www.getrichslowly.org/blog/?p=1767#comment-130825 Can I ask a (possibly dumb) question? I know that you have to earn less than $114,000 annually to be eligible to contribute to a Roth IRA. Suppose you start a Roth IRA in your 20s but somewhere down the line you move up the ladder into a higher tax bracket that makes you ineligible to contribute to your Roth. What happens then? Does that account go untouched until retirement (assuming your AGI doesn't decrease)? Can I ask a (possibly dumb) question?

I know that you have to earn less than $114,000 annually to be eligible to contribute to a Roth IRA. Suppose you start a Roth IRA in your 20s but somewhere down the line you move up the ladder into a higher tax bracket that makes you ineligible to contribute to your Roth.

What happens then? Does that account go untouched until retirement (assuming your AGI doesn’t decrease)?

]]> By: feedthefam http://www.getrichslowly.org/blog/2008/04/24/retirement-plan-rollover-chart/#comment-129305 feedthefam Fri, 25 Apr 2008 15:12:21 +0000 http://www.getrichslowly.org/blog/?p=1767#comment-129305 @Paul Williams - Thank you for the info. What an interesting concept. I may have to look into doing that this year. @Paul Williams - Thank you for the info. What an interesting concept. I may have to look into doing that this year.

]]> By: Paul Williams http://www.getrichslowly.org/blog/2008/04/24/retirement-plan-rollover-chart/#comment-129261 Paul Williams Fri, 25 Apr 2008 12:51:47 +0000 http://www.getrichslowly.org/blog/?p=1767#comment-129261 @feedthefam - Yes, you can max out your Roth contribution for the year and still rollover money from another plan. Rollovers do not count towards your contribution limit for the year. @JD - I agree the IRS website is very useful. As a financial planner who also completes tax returns (not my favorite part of the job), I use the IRS website A LOT during tax season. I still use it quite often throughout the rest of the year as well. @feedthefam - Yes, you can max out your Roth contribution for the year and still rollover money from another plan. Rollovers do not count towards your contribution limit for the year.

@JD - I agree the IRS website is very useful. As a financial planner who also completes tax returns (not my favorite part of the job), I use the IRS website A LOT during tax season. I still use it quite often throughout the rest of the year as well.

]]> By: No Debt Plan http://www.getrichslowly.org/blog/2008/04/24/retirement-plan-rollover-chart/#comment-129253 No Debt Plan Fri, 25 Apr 2008 12:16:25 +0000 http://www.getrichslowly.org/blog/?p=1767#comment-129253 The IRS website really isn't all that bad at all, I completely agree. Interesting chart. The IRS website really isn’t all that bad at all, I completely agree. Interesting chart.

]]> By: trb http://www.getrichslowly.org/blog/2008/04/24/retirement-plan-rollover-chart/#comment-129237 trb Fri, 25 Apr 2008 03:07:11 +0000 http://www.getrichslowly.org/blog/?p=1767#comment-129237 @jtimberman - don't blame the IRS for the structure of the tax code or their enforcement. That's Congress's doing - so vote the bums out! @jtimberman - don’t blame the IRS for the structure of the tax code or their enforcement. That’s Congress’s doing - so vote the bums out!

]]> By: feedthefam http://www.getrichslowly.org/blog/2008/04/24/retirement-plan-rollover-chart/#comment-129235 feedthefam Fri, 25 Apr 2008 02:41:05 +0000 http://www.getrichslowly.org/blog/?p=1767#comment-129235 Wow, what a great chart. I still don't understand, though, how it could be that you could roll a whole other retirement account into a Roth if you've already contributed the max to a Roth every year. For example, if I put $5k (the max) into my Roth for 2008 and also $5k into a 403(b), can I roll that into the Roth immediately and have a total contribution to my Roth of $10k for the year? Wow, what a great chart. I still don’t understand, though, how it could be that you could roll a whole other retirement account into a Roth if you’ve already contributed the max to a Roth every year. For example, if I put $5k (the max) into my Roth for 2008 and also $5k into a 403(b), can I roll that into the Roth immediately and have a total contribution to my Roth of $10k for the year?

]]> By: dogatemyfinances http://www.getrichslowly.org/blog/2008/04/24/retirement-plan-rollover-chart/#comment-129234 dogatemyfinances Fri, 25 Apr 2008 02:35:58 +0000 http://www.getrichslowly.org/blog/?p=1767#comment-129234 The IRS actually answers the phone too. I had an obscure question about LLC treatment in February, and it took me 6 minutes to get the right person on the phone who knew the exact answer. Try that in Europe. The IRS actually answers the phone too. I had an obscure question about LLC treatment in February, and it took me 6 minutes to get the right person on the phone who knew the exact answer. Try that in Europe.

]]> By: jtimberman http://www.getrichslowly.org/blog/2008/04/24/retirement-plan-rollover-chart/#comment-129233 jtimberman Fri, 25 Apr 2008 02:35:09 +0000 http://www.getrichslowly.org/blog/?p=1767#comment-129233 JD: Second that the IRS web site is outstanding!! I have been able to *very* quickly find authoritative information on a variety of tax subjects, such as car donations, dependents, charitable giving, and other topics that helped us itemize deductions, even though we use Turbo Tax. I'm not a CPA, but I really don't feel I need one to do our taxes, since the IRS makes the information easily searchable and downloadable. As much as I dislike the IRS and disagree with the constitutionality of income tax, I'll give them mad props for their web presence. JD: Second that the IRS web site is outstanding!!

I have been able to *very* quickly find authoritative information on a variety of tax subjects, such as car donations, dependents, charitable giving, and other topics that helped us itemize deductions, even though we use Turbo Tax. I’m not a CPA, but I really don’t feel I need one to do our taxes, since the IRS makes the information easily searchable and downloadable.

As much as I dislike the IRS and disagree with the constitutionality of income tax, I’ll give them mad props for their web presence.

]]> By: Bill http://www.getrichslowly.org/blog/2008/04/24/retirement-plan-rollover-chart/#comment-129218 Bill Thu, 24 Apr 2008 23:27:09 +0000 http://www.getrichslowly.org/blog/?p=1767#comment-129218 I also was tempted by Millennium. I checked their site and they are a foreign bank in the Grenadines. Deposits are not insured. That falls in line with the idea of higher risk = higher return. Although they claim investments are safe. I also was tempted by Millennium. I checked their site and they are a foreign bank in the Grenadines. Deposits are not insured. That falls in line with the idea of higher risk = higher return. Although they claim investments are safe.

]]> By: Luke F http://www.getrichslowly.org/blog/2008/04/24/retirement-plan-rollover-chart/#comment-129211 Luke F Thu, 24 Apr 2008 22:14:23 +0000 http://www.getrichslowly.org/blog/?p=1767#comment-129211 Really, a great article find. I will have to look more at the IRS website for more similar information. Really, a great article find. I will have to look more at the IRS website for more similar information.

]]> By: Pieter Friedrich http://www.getrichslowly.org/blog/2008/04/24/retirement-plan-rollover-chart/#comment-129210 Pieter Friedrich Thu, 24 Apr 2008 21:57:21 +0000 http://www.getrichslowly.org/blog/?p=1767#comment-129210 Off-topic, but I just saw Millenium Bank (mlnbank.com) advertised in your sidebar. They have some VERY attractive accounts for both savings and CDs. The only problem is that I've never heard of them and I'm wary about putting my money into just any random bank I encounter online. Do you or any of your readers know anything about Millenium? Are they reliable, etc? Off-topic, but I just saw Millenium Bank (mlnbank.com) advertised in your sidebar. They have some VERY attractive accounts for both savings and CDs. The only problem is that I’ve never heard of them and I’m wary about putting my money into just any random bank I encounter online.

Do you or any of your readers know anything about Millenium? Are they reliable, etc?

]]> By: crazypumpkin http://www.getrichslowly.org/blog/2008/04/24/retirement-plan-rollover-chart/#comment-129208 crazypumpkin Thu, 24 Apr 2008 21:12:36 +0000 http://www.getrichslowly.org/blog/?p=1767#comment-129208 It makes sense that nothing can roll into a Roth other than a Roth. If I'm not mistaken, most everything on the chart is funded with pretax dollars, while Roth is post tax dollars. It makes sense that nothing can roll into a Roth other than a Roth. If I’m not mistaken, most everything on the chart is funded with pretax dollars, while Roth is post tax dollars.

]]> By: Andy http://www.getrichslowly.org/blog/2008/04/24/retirement-plan-rollover-chart/#comment-129207 Andy Thu, 24 Apr 2008 21:09:50 +0000 http://www.getrichslowly.org/blog/?p=1767#comment-129207 Great chart. I have also found the IRS website pretty useful. Great chart. I have also found the IRS website pretty useful.

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