Traditional IRA

You have three options: 401K, traditional IRA, rollover IRA and ROTH IRA

401K: There are limited options to invest in 401K plan.  You cannot invest in individual stocks, and you have a limited number of funds to invest.  I'd stay away. 

Traditional IRA:  tax free now, withdraw with income tax after 59 1/2.

rollover IRA: same as traditional IRA, but you can send money in rollover IRA to a 401K plan later. 

ROTH IRA: pay tax now, withdraw without tax after 59 1/2.  

I used to advocate ROTH IRA, but someone commented that if you can deferr tax, why would you want to pay tax now? Nobody knows what's gonna happen, and the present value of money now is more than the present value of the same money in the future.  

So my recommendation is to rollover the money to Traditional IRA. 

 

所有跟帖： 

• 传统IRA 不是有income 限制吗？ -笑薇.- ♀ (0 bytes) () 07/05/2020 postreply 11:36:09

• For contribution, not for rollover. -柠檬椰子汁- ♂ (0 bytes) () 07/05/2020 postreply 12:01:45

• 明白了。研究了一下，转到Roth 比较合适。 -笑薇.- ♀ (0 bytes) () 07/05/2020 postreply 20:44:33

• 转到traditional IRA后就不能每年做backdoor roth IRA了 -waiting2020- ♀ (0 bytes) () 07/05/2020 postreply 12:32:42

• 怎么理解呢？请解释一下。 -笑薇.- ♀ (0 bytes) () 07/05/2020 postreply 13:10:53

• +1 -未知- ♂ (0 bytes) () 07/05/2020 postreply 13:59:55

• 为什么？现在有改变吗？人家土地用IRA买的都在转Roth，按%每年转一些进Roth。 -Progressive- ♀ (0 bytes) () 07/05/2020 postreply 17:10:17

• 没有改变，一直是这样。你说的不是Backdoor Roth IRA -未知- ♂ (0 bytes) () 07/05/2020 postreply 18:51:59

• 那些退休的不就是每年把IRA转成Roth吗？他们为什么可以转呢？ -Progressive- ♀ (68 bytes) () 07/06/2020 postreply 00:54:29

• backdoor roth IRA是给收入高的人投资roth IRA的方式。我只是提醒一下，当然如果你不做backdoor ro -waiting2020- ♀ (0 bytes) () 07/05/2020 postreply 23:21:06