myRA Clarification

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Topic Author
eloshine
Posts: 51
Joined: Thu Dec 04, 2014 6:16 pm

myRA Clarification

Post by eloshine »

Hi,

I've read prior threads on this here but answers seem to be antiquated or confusing.

I earn too much to contribute to a Roth IRA and my employer does not offer any retirement program. So, while I contribute $5,500 per year to a Traditional IRA (I don't transfer to a Roth), I'm also looking for more way to save, tax deferred or tax advantaged.

myRA seems like it could be for me, but I have the following questions:

1. If I'm ineligible to contribute to a Roth, can I contribute to a myRA

2. If I can contribute to a myRA, does this affect my ability to contribute to a Traditional IRA?

3. If I can contribute to a myRA and max it out at $15k, can I roll over entire sum to a Roth and start re-contribution to myRA?

Many thanks.
User avatar
JamesSFO
Posts: 3404
Joined: Thu Apr 26, 2012 10:16 pm

Re: myRA Clarification

Post by JamesSFO »

(1) myRA should be thought of as a brand name for a particular type of IRA, so if you are ineligible you are ineligible

(2) See (1)

(3) I'm unsure, but I believe the answer is no.
lack_ey
Posts: 6701
Joined: Wed Nov 19, 2014 10:55 pm

Re: myRA Clarification

Post by lack_ey »

It has the same restrictions in terms of contribution and income limits as a Roth IRA (and shares the same $5,500/year contribution limit pool).

Regarding tax-advantaged accounts, if you're in a qualified high-deductible health plan, you might have access to an HSA. If some of your money will be used for someone's education expenses at some point, you could use a 529.

There are always the normal taxable accounts, which aren't so bad with more tax-efficient investments.
cheapedy
Posts: 70
Joined: Mon Sep 19, 2011 2:44 am

Re: myRA Clarification

Post by cheapedy »

So for instance, I can not give my 19 year old son the money to invest in this. He would have to earn a minimum salary to qualify, same as any roth.
Topic Author
eloshine
Posts: 51
Joined: Thu Dec 04, 2014 6:16 pm

Re: myRA Clarification

Post by eloshine »

lack_ey wrote:It has the same restrictions in terms of contribution and income limits as a Roth IRA (and shares the same $5,500/year contribution limit pool).

Regarding tax-advantaged accounts, if you're in a qualified high-deductible health plan, you might have access to an HSA. If some of your money will be used for someone's education expenses at some point, you could use a 529.

There are always the normal taxable accounts, which aren't so bad with more tax-efficient investments.
My employer doesn't have an HSA, 401k, etc... they're plain terrible at this.

They should say that myRA is for starters, and quit marketing it for people who just don't have employer saving programs - damn government.

So looks like it's index funds in a taxable account... well at least I can deduct $5,500 for Traditional or rollover to a Roth.
kjvmartin
Posts: 1482
Joined: Wed Jan 21, 2015 7:57 am

Re: myRA Clarification

Post by kjvmartin »

eloshine wrote:Hi,

I've read prior threads on this here but answers seem to be antiquated or confusing.

I earn too much to contribute to a Roth IRA and my employer does not offer any retirement program. So, while I contribute $5,500 per year to a Traditional IRA (I don't transfer to a Roth), I'm also looking for more way to save, tax deferred or tax advantaged.

myRA seems like it could be for me, but I have the following questions:

1. If I'm ineligible to contribute to a Roth, can I contribute to a myRA

2. If I can contribute to a myRA, does this affect my ability to contribute to a Traditional IRA?

3. If I can contribute to a myRA and max it out at $15k, can I roll over entire sum to a Roth and start re-contribution to myRA?

Many thanks.
1. No

2. No

3. No. It's a one shot deal. You could maybe do one and if you have a spouse another.
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