Provided you meet the compensation requirements and the income limitations for each type of IRA, you may contribute to both a Roth and a regular IRA. However, the combined amount may never exceed $5,000 (or $6,000 if you are 50 or older). Therefore, should a 45-year old be eligible and choose to contribute $3,500 to his Roth IRA, the most he could contribute to a regular IRA for the same tax year is $1,500.
Yes, you can roll a regular IRA into a Roth IRA. You pay income tax on the amount you withdraw from the regular IRA, but do not have to pay a penalty for early withdrawal if you roll the money directly into the Roth IRA.
To convert a regular IRA into a Roth IRA you have to pay federal income taxes on any pre-tax contributions, as well as any growth in the investment's value. http://www.money-zine.com/Financial-Planning/Retirement/2010-Roth-IRA-Conversions/
Is your question can you have both a ROTH and Traditional IRA? If so, yes you can.
The calculator is used to calculate the benefits if anything between your normal IRA when you decide to a roth IRA. Roth IRA varies from normal IRA but both are unique to your financial situation.
Information pertaining to Roth IRA distributions can be found online at the Investopedia and the Roth IRA website. Both websites provide valid information pertaining to his or her Roth IRA Distributions.
Roth IRA Conversion Taxes. When you convert from a Traditional IRA to a Roth IRA you pay income tax on the contributions. The taxable amount that is converted is added to your income taxes and your regular income rate is applied to your total income.
Yes. An individual may make IRA contributions to both a Roth and aTraditional IRA, providing the combined contribution total does not exceed the contribution limit for the year.
Roth IRAs are similar to regular IRAs except for the fact that they allow you to forgoe a tax deduction. In order to qualify for a Roth IRA you must have documented form of compensation.
IRA is Roth
There are many rules that apply to both traditional and Roth IRA accounts. A rule that applies to both kinds of accounts is the annual maximum contribution limit of $5,000 ($6,500 if you are over 50).
No, you do not get a tax deduction for Roth IRA contributions. You pay regular income tax on the amount your contribute to your Roth IRA. The tax benefit is that any income you generate with the account (interest, dividends, etc.) is not taxed when you withdraw the money.