UnThreaded | Threaded | Whole Thread (6) | Ignore Thread Prev Thread | Next Thread
Author: PBrown One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76395  
Subject: IRA questions for Newbie. Date: 6/3/1998 8:30 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
I have a hst of IRA questions, as I have just begun considering an IRA for myself having only recently becoming Foolish.

1. I have money in a mutual fund that I'd like to move into a UV4+/UG5 portfolio. How do I do this, ie. transfer the money? Will I have to pay "transfer" fees, etc?

2. I'm currently in Medical School, so there is a possibility of eventually having an income that would preclude me from maintaing an IRA ($195,000 for married??). Will the growth realized in an IRA before my income excludes me from having one be protected from taxation?

3. Could someone direct me to a site that delineates both IRA and Roth-IRA rules, taxation paragdigms, contribution allowances, etc?

thanks,
PBrown
Print the post Back To Top
Author: SnootFool Two stars, 250 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 3565 of 76395
Subject: Re: IRA questions for Newbie. Date: 6/3/1998 10:12 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
<1. I have money in a mutual fund that I'd like to move into a UV4+/UG5 portfolio. How do I do this, ie. transfer the money? Will I have to pay "transfer" fees, etc?>

The easiest way is to open an account with a discount broker and fill out the paperwork at the brokerage to have the mutual fund shares sold & the cash tranfered into your brokerage account (I'm assuming that your mutual fund is *not* currently with a brokerage but with the fund company itself). Contact your mutual fund to check on the fees, if any, which would apply in this case. Fidelity charged me a small fee in a similar case ($10).

<2. I'm currently in Medical School, so there is a possibility of eventually having an income that would preclude me from maintaing an IRA ($195,000 for married??). Will the growth realized in an IRA before my income excludes me from having one be protected from taxation?>

Everybody is eligible for at least one IRA of the 3 most common types. In your case, a non-deductible Traditional IRA will *always* be an option, regardless of income. Only the Roth & deductible IRA have AGI limits (& in the case of the traditional IRA, whether or not you have a retirement plan at work plays a key role as well in determining eligibility for deductions). Once your money is in an IRA (of whatever flavor), it grows tax-deferred or tax-free (depending on IRA type) regardless of your income level. The IRS will only come calling when you withdraw Traditional IRA $ in retirement. Also: Roth IRA AGI limit for married (filing jointly only) is $150K, not $195K.

<3. Could someone direct me to a site that delineates both IRA and Roth-IRA rules, taxation paragdigms, contribution allowances, etc?>

Could I ever! Check out http://www.fairmark.com/ and http://www.rothira.com for starters.

BTW, with all the stress involved in attending medical school, probably the LAST thing you need is a UG5 account! Check out some of the growth screens with yearly trades (vice monthly!) such as Formula 90, Keystone, or Relative Strength. You'll be glad you did. Just my $0.02. ;-)

Chris

Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post Back To Top
Author: bacon Three stars, 500 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 3583 of 76395
Subject: Re: IRA questions for Newbie. Date: 6/4/1998 9:05 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
<1. I have money in a mutual fund that I'd like to move into a UV4+/UG5 portfolio. How do I do this, ie. transfer the money? Will I have to pay "transfer" fees, etc?>

Generally, no on the transfer cost. There's enough competition that this "cost" gets absorbed by the receiving brokerage. Depending on the mutual fund, though, you may have to pay a back end fee for taking any (or all) of your mnoney out of the fund. To effect the transfer, simply call/write/visit the Web page of the receiving brokerage (I use Datek, others use E*Trade, Ameritrade, etc), and fill out the forms (or order them, not all of these guys have this part down) and tell them what you want. They know how to do the transfer, and they'll do it for you.

<2. I'm currently in Medical School, so there is a possibility of eventually having an income that would preclude me from maintaing an IRA ($195,000 for married??). Will the growth realized in an IRA before my income excludes me from having one be protected from taxation?>

In the first place, the income won't preclude you from maintaining the IRA, simply from continuing to contribute to it. You get to keep it and watch the money already in it continue to grow. The growth in the IRA (a technical point--it won't be "realized" until you take the money out) at the time your income precludes you from _continuing to contribute_ and the growth after that point are all tax deferred (Regular IRA) or will be tax free upon withdrawal _when you feel like it_ (Roth IRA), unless the gummint taxes the Roth just like they're taxing the "tax free" Social Security travesty.

Good luck.

Eric Hines



Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post Back To Top
Author: PBrown One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 3584 of 76395
Subject: Re: IRA questions for Newbie. Date: 6/4/1998 9:45 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
Eric,

thanks for the response. Let's say that my income won't probably achieve the mentioned levels for another 10 years. Would it benefit me to set up a traditional IRA or a Roth?

Print the post Back To Top
Author: SnootFool Two stars, 250 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 3585 of 76395
Subject: Re: IRA questions for Newbie. Date: 6/4/1998 10:40 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
<Eric,

thanks for the response. Let's say that my income won't probably achieve the mentioned levels for
another 10 years. Would it benefit me to set up a traditional IRA or a Roth?>

I'm not Eric, but here's my $0.02 anyway: Either type of IRA will make you money but, of the 2, the Contributory Roth should make you lots more than the Traditional IRA, even if your Traditional IRA is deductible. You might want to check out a few IRA calculators to see the differences. Try the calculators at http://www.rothira.com and also read http://www.fairmark.com/rothira/rothvreg.htm

Open a Roth ASAP, you're losing money standing around reading these posts! <g>

Chris



Print the post Back To Top
Author: bacon Three stars, 500 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 3603 of 76395
Subject: Re: IRA questions for Newbie. Date: 6/5/1998 10:27 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
<Let's say that my income won't probably achieve the mentioned levels for another 10 years. Would it benefit me to set up a traditional IRA or a Roth?>

In general, if you expect to retire with a higher tax bracket than the one you're in now, a Roth is better. If the same or a lower tax bracket, then a Traditional works out better. But you need to do some number crunching. There are a number of calculators that will help; the one below is on a Strong mutual fund family page.

http://www.strong-funds.com/strong/Retirement/retire.htm

Hope this helps.

Eric Hines


Print the post Back To Top
UnThreaded | Threaded | Whole Thread (6) | Ignore Thread Prev Thread | Next Thread
Advertisement