My sister is a school teacher, and she is not sure if she should fund a Roth-IRA or TSA first.?
602772
Also important, and often overlooked, is the fact that all the growth that takes place within a Roth IRA is completely tax-free.  In a TSA or Traditional IRA, she pays taxes when she removes the money.  In a Roth IRA, when she withdraws, it is all tax free, because she paid taxes on it before she deposited.  But the money she removes is not the same amount as the money she deposited.  So, in the Roth IRA, all the profits on her investments inside the account are completely tax free.  This is particularly important if she is young, because the money will have many years to grow, and most likely the amount of growth will be larger than the total amount of cash deposited.  \n\nI usually suggest younger people to lean heavily toward Roth's, and as people get older, they may have more benefit from the tax deductions on other accounts instead.
290196
My idea would be to sell out your traditional ira and put the remaining into your roth ira. You should be talking to your financial advisor about all this. He or She should know all this and be able to guide you what to do. if not, time to get a new Financial advisor. But, at least check out this site which I pulled for you while doing my own research. It looks like it nails it on the head of what your asking about. Read it thoroughly and take it in, then talk to your financial advisor and go from there. Hope I was of some help to you. Good luck! Shuuutnstr =o)\nhttp://www.bankrate.com/brm/itax/news/taxguide/20060102e1.asp
54865
There are a lot of factors that you need to consider.  Such as how do you want to save the money.  You can go with a reg. savings account, stocks, bonds, IRAs...  Also, if you put the money into a money MAKING account, you may have to pay taxes even if the account is in your childs name.
604703
Find a financial advisor you trust (through interviewing them).  They will provide good investment advice.  Both IRA's grow tax deferred (you don't pay earnings along the way).  The differences are that \n\nTraditional ira- tax write off on contributions, taxed fully when withdraw, can't withdraw b4 59.5yrs old w/o 10% irs penalty and taxed on everything\n\nRoth- all contributions are already taxed (can't use it as a write off), by the time you're 59.5 yrs old (and assuming you had the account at least for 5 yrs) everything is tax free.  You are also allowed to take out the principal at anytime w/o penalty.  Some other rules apply to fully withdraw w/o penalty (i.e. 1st home purchase, higher education, etc.)\n\nAgain, if you have little to no investment experience, DO NOT listen to those hot stock tips, Suze Orman, or whatever is on TV.  By the time you hear of those 20% returns, you're already too late (i.e. real estate).  Please, please work with a professional.
1180754
depends on what investment options each employer provides.  If you really like the investment options at your preivious employer, you should leave it there.  If you really like the investment options at your new employer your should transfer it over there.  \n\nIf you like neither, you should roll it over to an ira at a big name company like fidelity or vanguard that have a lot of good options.
133917
At a younger age, the Roth is the best way to go. All your earnings and withdraw will be tax free. Also, in certain "situations" such as buying a home for the first time or medical bills you can have access to the funds, but generally you will have to wait a while to get your money. This savings vehicle should probably be combined with something like a 401k-especially if you can get an employer to match. Finally, you can get a credit for your retirement contribution on your taxes if you meet certain AGI restrictions. It is called the Retirement Contribution Credit, and, as I understand it, can be applied for Roth contributions. You have until 3/15 to contribute for last years' Roth-if you so choose. Good Luck!
618020
She needs to check with Social Security.  You can retire at 59 and a half, but the longer you wait, the more you receive in retirement benefits.  We all also get those statements from SS each year around our birthdays, she should save those, that'll tell her, too.
549825
First, do you have a "rainy day" fund with at least 3 months expenses?  If not, just stick the money in a money market fund for the day when you unexpectedly need cash.\n\n2nd, have you maxed out your Roth IRA (if you qualify)?  If not, do it.  If you don't have a Roth IRA yet, start one at T Rowe Price (I believe most Fidelity and Vanguard funds have a $3,000 minimum).  Invest the money in a good index fund such as the Total Equity Market Index.  Or do some research to see which fund fits your growth targets and risk tolerance.
1052064
A simple trust might not be the best way to go.\n\nTrusts are taxed at higher rates than people with fewer exemptions (gross oversimplification but it's true) -- I'm an IRS phone rep and know from whence I speak.\n\nTrusts require professional trustees and advisors and those ain't cheep!\n\n And if these "kids" are (old enough to be your grand)kids, you could get gouged with generation-skipping tax!\n\nHave you talked with your financial advisor? Many states offer prepaid tuition bonds and instruments that accumulate value tax free.\n\nAlso if kids are young you might want to set up bank accounts for each of them individually. Teach them the value of saving while you help them reach their goals.\n\nAnd one last -- most important thought -- If you invest in government instruments that accumulate tax free interest, you can use the proceeds to pay your four kids' tuition without (Federal) tax -- provided you pay the college directly.\n\nGood luck, Cincypix
1057768
PUT IT IN A ROTH IRA. I just took a dave ramsey course in school and if u have any other info ask me.. i have an easy to read book on all money questions
988055
Boy, I would really avoid that if you can. The withholding isn't really up to you. They are going to keep 30 percent if the principal is before-tax money (in a Roth) and 30 percent of the profit if it is after tax money (in a traditional). But the penalty is so severe that you ought to consider doing other things (second job or whatever) to avoid the hit and the loss of your compounding if you possibly can. $1,000 left alone for 40 years will grow to more than $100,000 in a growth stock fund.
663139
As long as you have fully funded your own retirement, THEN start putting money away for your kids college.  If you haven't maxed out your own retirement savings (401(k), Roth IRA), then you should NOT be saving anything for your kids college (unless you expect the kids to fund your retirement). \n\n529 accounts are good only IF you are certain that the kids will go to college.  There are other options.  Talk to a Certified Financial Planner (CFP) to find out what they all are.  Just be careful - make sure they are not paid a commission based on your investments.  They should receive a flat fee.
442756
You should use 4000 to put into a ROTH IRA.  You can put another 4000 in a ROTH IRA for your wife.  If you are taking advantage of the tax deduction of mortgage interest, your interest rate is effectively 4%, so it probably makes more sense to invest rather than pay off your mortgage.\nYou might want to put your 2000 into municipal bonds which will give you tax-free income.
356151
You can choose both! If your not too rich.\n\nIf your employer matches your contributions to the 401k...put in enough to get the match.....put the rest of your money in a Traditional IRA ($4,000) max.......you can put more money tax defered in the 401k but an IRA gives you more control over your money and allows you to choose how to invest it.\n\nNow many people will whine and complain that you should use a Roth IRA....I dont care what you do....but if you use a traditional IRA..you get a tax break now......\n\nFor Further reading on this..check our IRS publication 509.
1109453
GOD YES!!!! NOW IS A GREAT TIME!!!\n\nI work as a financial advisor and I wish I could get as many people in their 20's to buy a Roth IRA.  \n\nRemember, a Roth IRA means that you do not pay taxes on the growth or interest, and their is no taxes when you take the money out after age 59 1/2 years old.\n\nAlso, if you work and you company offers a 401k, try that as they might match you on what you put in.  Remember, that money is not taxed when it goes in, but is taxed when you take it out after age 59 and 1/2.  \n\nIf you are so inclined, you can do both.\n\nTry Scottrade.com, or etrade.com if you want no limits on what you can invest in.\n\nStart with a mutual Fund that is called "balanced" or Asset Allocation.
453308
I just spoke to the principal of an international school about this last week.  His school has worked out a Roth with an office that is in a U.S. territory nearby.  The tax is prepaid so there's no tax or penalty paid at retirement.  Email a investor in the Mainland to see what they can offer.  Some offices are just ignorant of the law, as most folks are for most things like voting, taxes, shipping things to people who are abroad.  You may want to email an investment group someplace like the Virgin Islands, Guam, Puerto Rico...  They're more familiar with policies and retirement programs for Americans living outside the Mainland.
55570
The 403b clearly can be rolled over into a traditional IRA without any penalty or tax consequences, and my understanding is that you must first rollover the 403b into a traditional IRA.\nThen, if you are below maximum income requirements and qualify for a Roth, you can take money out of the IRA, which is then taxed as income, and transfer it to a Roth IRA. You therefore are paying taxes in the year you take the money from the TSA. This is usually most advantageous the younger you are.\nThis is a highly complicated issue, but the attached sources provide some good information about the pros and cons, as well as the procedures for doing such a transfer.