08-27-2021, 09:09 AM
(This post was last modified: 08-27-2021, 09:11 AM by ken-do-nim.)
(08-27-2021, 07:54 AM)fenders53 Wrote: I think there may be a brief wait time. I bet the clock starts on the account's born date? That's an easy fix. Just start a ROTH IRA and drop a couple K into it a couple years before retirement and roll yuor employer account into it later. As the divs are pulled you pay the tax of course. Your CAP gains can compound awhile longer tax free.
It will work for you. You just can't gamble too much with this account. I am allowed to do options but it's more conservative in nature. They won't let me naked short MRNA lol.
As always, I am not your financial nor your tax advisor. Neither is Chad but he knows the rules.
I don't think you are right on that first part. From this Investopedia article, ""As long as you withdraw money invested in a Roth IRA after the age of 59½—and you owned that account for more than five years—you will pay zero taxes on the withdrawals, even if the withdrawals include dividends""
As to the second point, my existing E*Trade ROTH IRA doesn't have any restrictions I'm aware of. Chad above mentioned he wasn't allowed to do triple leveraged ETFs in his. I wonder why my account is different.
So now that I can roll my ROTH 401(k) into my ROTH IRA at age 59.5 (or when I retire), this gets very interesting. I can use the ROTH IRA for the highest yielding portions of my portfolio (ex ARCC), and not get taxed at all, while the equities in my taxable account like ABBV provide the more conservative (but still respectable) yield. Hmm... this may significantly lower the amount I was expecting to need to acquire for my nest egg. I'll have to run some numbers.