Question regarding Roth IRA??

Question

i know this is a newbie question.. sorry i am new to all this..


Can i have my company deposit money into my Roth IRA account or do i have to do it at my own? Also lets say if i deposit my money at my own from my bank to my Roth IRA account, will i be taxed on that money again, even thought my company deducted my taxes from my paycheck??

Answer 1

Good for you! Too many people are in for trouble later on because they are not saving now. You won't be one of them.

First, you cannot roll 401K money into a Roth IRAs. Roths are for after tax money, 401K money hasn't had any taxes taken from it. I am not sure if this is what you are asking, but that is the situation.

Second, you have to deposit it on your own, your company cannot do it normally (maybe if you work for Fidelity or Morgan Stanley or the like, you can. I don't know). Your money has already been taxed by your company, so it is yours to do as you please. Once you put the money into a Roth, you won't be taxed on it (unless you pull money out of the Roth early, but that is another topic).

Third, what you can do is set up an automatic deposit into your Roth from your account. You can work with your brokerage on this.

You can learn more about IRAs here:

http://www.fool.com/ira/ira01.htm

Answer 2

Lots of companies WILL do this. A ROTH is just an account where you put AFTER TAX $$. Get the account number, the routing number (probably other stuff too) fromyour ROTH manager, and get a form from HR. There should be a way to deposit a specified amount into an account each pay period.

Answer 3

You can have your IRA company automatically deduct a set monthly amount from your checking or bank account, but typically your employer will not send money automatically to your IRA.

If you have a ROTH IRA, nobody is going to tax you on the money you deposit. But you can't deduct it from your income at tax time.

Answer 4

Based on your age you will have to make sure you are not going over the current maximum you can contribute per year to your Roth IRA. (check with your tax preparer, financial institutioin or financial advisor for an amount). As long as you aren't going over that amount you can seperately contribute from your bank account to the Roth as well as from your paycheck at your company. And no, you should not be double taxed on the funds.

Answer 5

your dad will would desire to pay tax on the element of the money that have been transferred to the roth ira interior the twelve months he transferred them. he will in all probability would desire to pay a 10% penalty on those money as nicely because he's merely fifty seven. The 591/2 age shrink nonetheless applies to roth as nicely as classic IRA's distributions.

Answer 6

You should have it set up so it is deducted from your paycheck before being taxed. You should only be taxed on it if you take out the funds before the IRA matures.

Answer 7

1st question yes.
2nd question no
a roth ira is after tax moneys. you will not be taxed on any interest when you start to withdrawl at 59.5