What Roth IRA have you had a good experience with?

[stuckmotor]

About all I know what to do with money is spend it.
Now I've got to start taking disbursements from an IRA that I've had since the 1980's and my wife says there are tax advantages in a Roth IRA to stash in it in, with an eye toward taking some out periodically or leaving it to her or our son. Can someone who's had a good experience with one please direct me to it.

 

[KennyG]

If you are taking required minimum distributions from a traditional IRA, realize you can only contribute to a Roth IRA if you are working and have income. If that is the case, the Roth would let you accumulate gains tax free but you the money you put into it must be earned income that has been taxed.

If that's your situation and this is a long term investment, I would always recommend an S&P 500 index fund like the ones from Vanguard or Fidelity.

 

[DarkBlack]

What he said. Legally you can only contribute to a roth if you or your wife are still employed.

 

[KennyG]

One minor clarification that doesn't apply to most people - if you have some money in a traditional IRA that was put in after tax instead of before tax, it can be converted to a Roth IRA. In my case, I sometimes contributed to my traditional IRA with after tax money because I put in more than I was allowed to contribute before taxes. When the Roth came into existence, I took the after tax contributions out of the traditional IRA and moved it to a Roth. You have to have the records to show this but it saves money on taxes.

Most people don't have this situation, but I thought I'd mention it. (If you move before tax contributions from a traditional to a Roth IRA you have to pay the taxes at that time. That usually doesn't make economic sense.)

 

[DarkBlack]

One minor clarification that doesn't apply to most people - if you have some money in a traditional IRA that was put in after tax instead of before tax, it can be converted to a Roth IRA. In my case, I sometimes contributed to my traditional IRA with after tax money because I put in more than I was allowed to contribute before taxes. When the Roth came into existence, I took the after tax contributions out of the traditional IRA and moved it to a Roth. You have to have the records to show this but it saves money on taxes.

Most people don't have this situation, but I thought I'd mention it. (If you move before tax contributions from a traditional to a Roth IRA you have to pay the taxes at that time. That usually doesn't make economic sense.)

But your conversation was a taxable event that year at the $ level moved, when you executed it.

 

[KennyG]

But your conversation was a taxable event that year at the $ level moved, when you executed it.

No, I only moved the original after tax contribution so there was no tax liability.

 

[DarkBlack]

No, I only moved the original after tax contribution so there was no tax liability.

Ok, so you must have left behind your gains in the traditional IRA, or paid taxes that year on the gains, to completely convert.
You’re right, That is, an unusual situation.

 

[caver]

Old former co-worker invested in a Fruit Jar IRA. Put your money in fruit jars and bury them.

 

[JasperFrank]

KennyG- "I would always recommend an S&P 500 index fund like the ones from Vanguard or Fidelity." I agree.

 

[CloverKnollFarms]

We have a couple ROTH IRAs with Vanguard, and a ROTH 401k at Schwab.

It's probably more important what YOU do with it once it's moved, than where it's moved to. No matter where we have had our money, it's always outperformed the broad market