The Motley Fool Discussion Boards

Previous Page

Financial Planning / Tax Strategies


Subject:  Re: Roth IRA Date:  3/19/2000  8:30 AM
Author:  hghcpa Number:  32103 of 128043

Well, ask a stupid question. I'm trying to understand
about Roth IRAs as they have to do with retired people.
I ask this yesterday and did not make myself
understood. So I'll try again a different way.

Can I transfer $18,000 in stock certificates out of my
company 401K plan as stock certificates, to a Roth IRA,
paying the required taxes of appox. $2,700 now. Then,
leaving it at least 5 years, get the appreciation,
considering it does go up, tax free?

As long as you are eligible for a distribution from the 401k then I believe the procedure would be to distribute to your IRA and then convert the IRA to a ROth.

Could I also contribute an additional $2,000 each year
here after? Or, is it true as I've been told, retired
people cannot have a Roth IRA?
You may as long as your income is below certain thresholds and you have "earned" income equivalent to the amount of the ROTH contribution (<=2,000).

Earned income is income subject to FICA tax - IE wages.


Sorry, I forgot to mention I am retired
Copyright 1996-2018 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us