Did you do your taxes yet?

TrailerParkJawa · Post by **TrailerParkJawa** » 2003-02-08 12:24am

Durran Korr wrote:Jawa, I take it you have some expertise concerning taxes. Well, I have a question. I started up a ROTH IRA this year, putting down $2000 (yeah, I'm a REAL early starter). Can I get any sort of deduction?

No, a Roth IRA is not deductable. However, when you start taking money out of the Roth at retirement the govt will not tax it.

As opposed to a traditional IRA where you can currently deduct $3,000 dollars from your income, you will be taxed on that money as normal income when you take it out at retirement.

A Roth is a great idea for young people in the lower tax brackets, frankly I like the idea of one for anyone.

Joe · Post by **Joe** » 2003-02-08 12:26am

TrailerParkJawa wrote:
Durran Korr wrote:Jawa, I take it you have some expertise concerning taxes. Well, I have a question. I started up a ROTH IRA this year, putting down $2000 (yeah, I'm a REAL early starter). Can I get any sort of deduction?
No, a Roth IRA is not deductable. However, when you start taking money out of the Roth at retirement the govt will not tax it.

As opposed to a traditional IRA where you can currently deduct $3,000 dollars from your income, you will be taxed on that money as normal income when you take it out at retirement.

A Roth is a great idea for young people in the lower tax brackets, frankly I like the idea of one for anyone.

Yeah, I had a nest egg sitting around in savings, figured I ought to do something with it.

TrailerParkJawa · Post by **TrailerParkJawa** » 2003-02-08 12:40am

Durran Korr wrote: Yeah, I had a nest egg sitting around in savings, figured I ought to do something with it.

Thats a good choice, just try to resist the temptation to pick individual stocks inside your Roth. I rolled my 401K over into an IRA on E*Trade. A couple of times Ive been tempted to try to trade, but I know in the end I will lose. Its kinda like trying to keep my hand out of a cookie jar.

Joe · Post by **Joe** » 2003-02-08 12:42am

TrailerParkJawa wrote:
Durran Korr wrote: Yeah, I had a nest egg sitting around in savings, figured I ought to do something with it.
Thats a good choice, just try to resist the temptation to pick individual stocks inside your Roth. I rolled my 401K over into an IRA on E*Trade. A couple of times Ive been tempted to try to trade, but I know in the end I will lose. Its kinda like trying to keep my hand out of a cookie jar.

Yeah, my parents made that mistake (with WORLDCOM STOCK) so I know better than that, at this point.

Master of Ossus · Post by **Master of Ossus** » 2003-02-08 01:58am

I did mine over a year ago.