Investing General Discussion
- Thread starter Furious
- Start date
AFAIK, you can't. You have to contact your administrator and reverse your tIRA contribution and make a separate Roth contribution. You'll get a form reporting a non-taxable disbursement from your tIRA for an amount that you'll have to file as income in 2021.
Fixing contributions is a giant fucking pain, and why I never make them until I've finalized my taxes.
Khane
Got something right about marriage
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I think she's talking about backdooring (heh heh heh) a Roth. AFAIK you just create a Roth, and rollover the funds from the traditional into the Roth.
Mist
Eeyore Enthusiast
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No, I'm not, he has it right. I made my annual IRA contribution for 2020 back when the market was bottomed out, so I could invest in more mutual funds, but I made a traditional IRA contribution because I expected to make less money, rather than a Roth IRA contribution. I still ended up making 130kish last year, so I want to change that contribution for 2020 to a Roth IRA contribution, as there is is no tax benefit for a traditional IRA contribution given the amount of money I made.
I believe this is what I'm supposed to fill out but... idk.
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Sanrith Descartes
Veteran of a thousand threadban wars
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Mist
Eeyore Enthusiast
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"Unrealized gains" posts are lol. Anyone that quadrupled their money and didn't sell is a fucking idiot.Reddit - Dive into anything
www.reddit.com
When I was "day trading" cards on MTGO for a living, my rule was always if it doubles, sell half, if it quadruples, sell everything and wait for it to dip.
Ouch. If your 2020 tIRA funds have been in the market long enough to accrue gains that's a whole other can of worms. You'll have to extract the gains from the account that derive from your 2020 contribution, declare those as income in 2021, and possibly pay penalties. The paperwork is miserable.
IMO just leave them as is, consider this a lesson learned, and in the future don't make contributions for a given tax year until you've finalized your filing and are 100% sure of your elicitability for contribution.
Mist
Eeyore Enthusiast
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I don't think that's true as long as I file the proper paperwork before the tax filing deadline.
But that's why I want a tax expert to tell me.
You will. I had to go through this shit over $6 a few years back. That money has been accruing market gains into 2021 and there isn't any clean way to hit an "undo" button.
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If you retire before 65 you can take your 401k money out penalty free before 65 too. Its called the rule of 55 (50 for certain jobs like firefighter/police, etc).
What Is the Rule of 55? - Experian
Learn about what the rule of 55 is and how to use it to retire early, plus other early withdrawal exceptions that could allow you to access your 401(k).
www.experian.com
so i've been pursuing a slow growing long hold/retirement plan position in something that is more ubiquitously consumed than even the memiest of meme stonks. concrete. or carbon neutral cement..or even carbon positive cement. with the world in general / Paris climate agreement aiming for reduced carbon emissions and Biden administration focusing US toward this, attention for carbon capture tech from elon in the form of 100m reward, concrete is the most widely used man made resource in the world, 2nd most consumed resource after water, is responsible for ~8% of global emissions and the Paris climate agreement has the benchmark set for the cement industry to reduce emissions by 16% by 2030.
still early stage but opinions from the big brains ?
still early stage but opinions from the big brains ?
Furry
WoW Office
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You can also sepp and amoritization schedule to early withdrawl. For the amoritization path you'll definitely want to hire a CPA to fill the paperwork, its a mess and if the IRS thinks your schedule request isn't reasonable in their eyes, they come in hot after the fact to raze your account down. SEPP is probably the most available early withdrawal path, and is available to anyone at any age.If you retire before 65 you can take your 401k money out penalty free before 65 too. Its called the rule of 55 (50 for certain jobs like firefighter/police, etc).
What Is the Rule of 55? - Experian
Learn about what the rule of 55 is and how to use it to retire early, plus other early withdrawal exceptions that could allow you to access your 401(k).www.experian.com
Sanrith Descartes
Veteran of a thousand threadban wars
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If you retire before 65 you can take your 401k money out penalty free before 65 too. Its called the rule of 55 (50 for certain jobs like firefighter/police, etc).
What Is the Rule of 55? - Experian
Learn about what the rule of 55 is and how to use it to retire early, plus other early withdrawal exceptions that could allow you to access your 401(k).www.experian.com
Interesting, but this only works for the 401(k) from your current job at 55. You can't withdraw early from retirement plans under different employers.
TJT
Mr. Poopybutthole
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Lol dogecoin today.
I just looked at my history, at one point I had 1 million coins and another time I bought and sold 777,000 coins.
Wonder how far it’ll go.
I just looked at my history, at one point I had 1 million coins and another time I bought and sold 777,000 coins.
Wonder how far it’ll go.
Sanrith Descartes
Veteran of a thousand threadban wars
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