Very interesting. I have been contributing the maximum ROTH IRA amount since I heard about it, and I use an Ameritrade account, which works very well. Also great for trading, since one doesn’t pay short-term capital gains, while in the regular accounts one could rather hold for long-term capital gains. By the way, the ROTH is the greatest thing if you believe in high inflation, because it is the only instrument, where you don’t get taxed on the extra artificial gains caused by inflation.
Sorry for my low knowledge, but this post inspired a lot of questions:
a) Regarding that IRA rollover, can you roll-over more than your annual ROTH contribution limit? I never heard of this.
b) Regarding the income limit, does anyone know how capital gains are treated. E.g. if one has a salary of $80,000 and sends in the $4,000 to the ROTH at the beginning of the year. During the year, one ends up making $70,000 in capital gains from regular investments. Does this exceed the income limit? If yes, does one have to take out the $4,000 again?
I don’t expect precise answers, but good links would be nice.
