Home Page link  

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

  
Groups | Search | About
User Password
Register Now! Lost Password?

Taxes General Forum - Tax professionals meeting place and answers to queries. (Moderated)

 Post an article  get this group's latest topics as an RSS feed add this group's latest topics to your My MSN content add this group's latest topics to your My Yahoo content  add this group's latest topics to your Google content  YahooMyWeb Yahoo!  Google Google  Windows Live Favorites Windows Live  del.icio.us del.icio.us  digg digg  Add to Netscape Netscape
Subject Author Date
Roth IRA? Please explain the taxes in reference to Roth IRA vs. Traditional Zigball 04-03-2008
Posted by Zigball on April 3, 2008, 4:03 pm
Please log in for more thread options
 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.

--
<< ------------------------------------------------------- >>
<< 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 Barry Margolin on April 3, 2008, 4:54 pm
Please log in for more thread options
 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. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>

Posted by DF2 on April 3, 2008, 5:03 pm
Please log in for more thread options
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
Please log in for more thread options

> 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
Please log in for more thread options
> > 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.                 >>
> <<         Copyright (2007) - All rights reserved.         >>
> << ------------------------------------------------------- >>

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. >>
<< ------------------------------------------------------- >>

Similar ThreadsPosted
Traditional vs. Roth IRA April 12, 2007, 12:44 am
Should a 60 yr-old guy convert a traditional IRA to Roth IRA? January 16, 2007, 3:54 am
Advice on coverting Traditional IRA to ROTH January 1, 2008, 11:14 am
Paying tax on Traditional to Roth IRA conversion October 30, 2008, 6:06 pm
Rollover of Roth 401k into Roth IRA February 11, 2008, 2:17 pm
How are 457 to Roth IRA rollover taxes handled? February 6, 2008, 1:01 pm
ira/Roth December 12, 2006, 1:56 am
SEP / Roth IRA February 11, 2008, 2:19 pm
What can a Roth IRA own? April 20, 2008, 1:06 pm
Roth IRA May 4, 2008, 11:26 am

Contact Us | Privacy Policy
This site is not affiliated with Intuit - makers of Quickbooks and Quicken software
This site is not affiliated with Sage Software - makers of Peachtree accounting software
XML SitemapXML Sitemap