Roth IRA? Please explain the taxes in reference to Roth IRA vs. Traditional

Posted by Zigball on April 3, 2008, 4:03 pm

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Hello All,

I am trying to figure out the Roth IRA for tax purpose. Is there
anyone who can give me understanding for a 1040 tax return. I found
that non deductible contributions and deductible contributions make a
difference with Roth IRA contributions, in any case will any of these
contributions be reported on a 1040 tax return. I also know that the
custodian is responsible for repoting non-deductible roth ira
contributions to the irs. Please explain in as much detail as
possible, thanks in advance.

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Posted by Barry Margolin on April 3, 2008, 4:54 pm

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In article

> Hello All,

> I am trying to figure out the Roth IRA for tax purpose. Is there

> anyone who can give me understanding for a 1040 tax return. I found

> that non deductible contributions and deductible contributions make a

> difference with Roth IRA contributions, in any case will any of these

> contributions be reported on a 1040 tax return. I also know that the

> custodian is responsible for repoting non-deductible roth ira

> contributions to the irs. Please explain in as much detail as

> possible, thanks in advance.

There's no such thing as deductible contributions to a Roth IRA. Only
regular IRAs allow you to deduct contributions, if you're not covered by
a retirement plan at work or your income is below a certain amount.

Are you actually concerned with converting a regular IRA to Roth? In
that case, the amount of deductible contributions to the original IRA
affects the tax you pay during the conversion -- it's taxed similarly to
withdrawing from the IRA, except there's no penalty for early withdrawal.

Just follow all the instructions for Form 8606 and the right thing
should happen.

--
Barry Margolin, barmar@alum.mit.edu
Arlington, MA
*** PLEASE don't copy me on replies, I'll read them in the group ***

--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
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Posted by DF2 on April 3, 2008, 5:03 pm

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In misc.taxes.moderated, Zigball wrote:

>Hello All,

>I am trying to figure out the Roth IRA for tax purpose. Is there

>anyone who can give me understanding for a 1040 tax return. I found

>that non deductible contributions and deductible contributions make a

>difference with Roth IRA contributions, in any case will any of these

>contributions be reported on a 1040 tax return. I also know that the

>custodian is responsible for repoting non-deductible roth ira

>contributions to the irs. Please explain in as much detail as

>possible, thanks in advance.

Yeah, right.

See
http://www.google.com/search?hl=en&q=roth+traditional+ira+advantages&btnG=Google+Search

--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>

Posted by Rich Carreiro on April 3, 2008, 5:20 pm

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> Hello All,

> I am trying to figure out the Roth IRA for tax purpose. Is there

> anyone who can give me understanding for a 1040 tax return. I found

> that non deductible contributions and deductible contributions make a

> difference with Roth IRA contributions,

"Deductible contributions" and "non-deductible contributions"
are terms pertaining to TRADITIONAL IRAs, not Roth IRAs.

You do not report the Roth IRA contributions you make.

--
Rich Carreiro rlc-news@rlcarr.com

--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>

Posted by Zigball on April 4, 2008, 12:20 am

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> > Hello All,

> > I am trying to figure out the Roth IRA for tax purpose. Is there

> > anyone who can give me understanding for a 1040 tax return. I found

> > that non deductible contributions and deductible contributions make a

> > difference with Roth IRA contributions,

> "Deductible contributions" and "non-deductible contributions"

> are terms pertaining to TRADITIONAL IRAs, not Roth IRAs.

> You do not report the Roth IRA contributions you make.

> --

> Rich Carreiro rlc-n...@rlcarr.com

> --

> << ------------------------------------------------------- >>

> << The foregoing was not intended or written to be used, >>

> << nor can it used, for the purpose of avoiding penalties >>

> << that may be imposed upon the taxpayer. >>

> << >>

> << The Charter and the Guidelines for submitting posts >>

> << to this newsgroup as well as our anti-spamming policy >>

> << are atwww.asktax.org. >>

> << ------------------------------------------------------- >>

Thanks to all,
In Addition:

Strange I used to work for a brokerage firm, I should know a little.
Besides is it safe to assume that the IRS assumes that all Roth IRA
contributions are pre-taxed or am I in a galaxy far far away? How are
Roth IRA contributions made? Where does the contributions have to come
from (are there regulations) and are the contributions ever taxed on a
Roth Ira(if so when and how in basis)?

Traditional IRA's, is the contributions taxed twice if you contribute
income from your net income (job)? I need better understandings of
these things I will appreciate any one's help again, thanks in
advance.

--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>