| Whats the one thing you really dont like about a ROTH? |
|
|
|
|
|
freshstart
New Member
Cash: $ 0.65
Posts: 3
Joined: 27 Jul 2005
|
Just to confirm:
You can take out your contributions as many times as you want without penalty? So, if I contributed $3000 YTD, I can take out $2000 today and the other $1000 next month? Or is it a one time per year?
|
Fri Jul 29, 2005 4:42 am |
|
|
mxjbt
Member
Cash: $ 2.20
Posts: 11
Joined: 19 Nov 2006
|
|
 |
|
Can you explain this Tax free anytime Roth? Its my understanding a Roth has to be in effect for 5 yrs before you can touch it but only after 59.5 can you touch it tax free.
From the Herald-Press:
"If you start a Roth IRA in 2006, your distributions will be tax-free beginning in 2011. Second, one of the following conditions must be met: you are age 59 or older at the time of the distribution; you are disabled; the distribution is used to pay up to $10,000 of qualifying first-time home buyer expenses; or you are a beneficiary receiving distributions following the death of the account holder."
For doubling your money in 1 year, how much did you pay in taxes and what is the actual amount you gained after paying taxes. If he doubled his VUL in 3yrs he keeps the gains tax free. Since its been performing at an avg of 12% for the past 25 yrs its a sound way to grow money. Its not a guarantee just like the stock market but its a good indication of what it is capable of in the future.
Most people are not daily money managers so someone who can't manage thier money to the hour is going benefit from a vehicle like this. He's had 2 cycles of doubling in 3 years without managing it. Can you continue to get 72% without micro managing your money? and regardless 72% on your money is impressive...congrats!
oops this is old...oh well
|
|
Sun Nov 19, 2006 12:59 pm |
|
|
BlankenshipFP
Money Talk Advisor
Cash: $ 79.56
Posts: 390
Joined: 05 Oct 2004
Location: Illinois
|
mxjbt, the post from efflandt refers specifically to contributions which you can withdraw from the Roth IRA at any time for any reason without tax or penalty. Growth in the account must be treated as you indicate, after five years (for a conversion) and after age 59.5.
Hope this helps -
Jim Blankenship, CFP®, EA
Blankenship Financial Planning, Ltd.
www.BlankenshipFinancial.com
Standard IRS Circular 230 Notice Applies
|
|
Mon Nov 20, 2006 3:53 pm |
|
|
|
