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.
myRA Clarification
Re: myRA Clarification
(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.
(2) See (1)
(3) I'm unsure, but I believe the answer is no.
Re: myRA Clarification
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.
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.
Re: myRA Clarification
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.
Re: myRA Clarification
My employer doesn't have an HSA, 401k, etc... they're plain terrible at this.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.
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.
Re: myRA Clarification
1. Noeloshine 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.
2. No
3. No. It's a one shot deal. You could maybe do one and if you have a spouse another.