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Old 02-08-2015, 03:24 PM
 
Location: Hard aground in the Sonoran Desert
4,656 posts, read 8,639,529 times
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Quote:
Originally Posted by Burkmere View Post
Let's say I can make a lot trading the account. Rather than pay taxes trading my personal account there may be reasons I would want to withdraw some profits tax free from the Roth.
Then why would you want to put put post tax money back in???

You are paying taxes on whatever new money you put in.
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Old 02-08-2015, 03:35 PM
 
2,296 posts, read 1,563,546 times
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Quote:
Originally Posted by Lowexpectations View Post
You clearly don't understand how either Roth IRAs work, taxes work or math. It's possible all of the above
You're funny. Clearly since I'm getting Way above index returns profits trading the Roth (as I've been doing) it may make more sense to take the profits from the Roth tax free and continue to add to the Roth instead of trading a personal account and paying capital gains taxes. Just wanted to clarify.
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Old 02-08-2015, 03:42 PM
 
18,866 posts, read 13,631,032 times
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Quote:
Originally Posted by Burkmere View Post
You're funny. Clearly since I'm getting Way above index returns profits trading the Roth (as I've been doing) it may make more sense to take the profits from the Roth tax free and continue to add to the Roth instead of trading a personal account and paying capital gains taxes. Just wanted to clarify.
You are never taxed on the gains. Your idea makes zero sense
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Old 02-08-2015, 03:43 PM
 
Location: WA
5,397 posts, read 21,407,363 times
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As I understand it the funds must be left in a Roth for five years to avoid taxes... could screw up your plan.
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Old 02-08-2015, 03:53 PM
 
2,296 posts, read 1,563,546 times
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Quote:
Originally Posted by cdelena View Post
As I understand it the funds must be left in a Roth for five years to avoid taxes... could screw up your plan.
The Roth is way over 5 years old. I know all about the rules.

Never mind the question. You aren't understanding what I'm asking.
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Old 02-08-2015, 03:57 PM
 
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it still makes zero sense . just keep the money in the roth and spend what you would have contributed .all you are doing is moving money from your left pocket to your right and the net effect is a wash. pulling out up to 5500 in gains and putting up to 5500 back in is the same thing,
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Old 02-08-2015, 04:39 PM
 
189 posts, read 263,164 times
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Quote:
Originally Posted by Burkmere View Post
The Roth is way over 5 years old. I know all about the rules.

Never mind the question. You aren't understanding what I'm asking.
If you know the rules why bother asking.

It has been said many times here it does not make sense. Do what you want apparently you just want to hear what you want. Best of luck
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Old 02-08-2015, 06:39 PM
 
291 posts, read 250,772 times
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Quote:
Originally Posted by Burkmere View Post
I'm old enough to withdraw from my Roth now. As long as I meet the income criteria (have earned income) I can still contribute so can I both contribute and withdraw tax free pretty much at will right?l( I can contribute the 6500 per catchup provision) and am 60 so can withdraw, too, right?
Yes, you can still make a 6500 contribution and take distributions.

What the other commenters don't seem to understand, and which I think you are trying to say, is that you don't have enough liquidity outside the roth to pay for taxes or other living expenses. (Or you don't want to waste the other liquidity) If you couldnt take the distribution from the roth you'd have to sell stocks in a taxable account which would cause a liability. Instead you will sell the stocks within the roth, take the distributioms to pay your taxes on your other taxable income (not the roth) or other expenses and still be able to fund the roth.
Good luck.
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Old 02-08-2015, 07:07 PM
 
18,866 posts, read 13,631,032 times
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Quote:
Originally Posted by Bradmilano View Post
Yes, you can still make a 6500 contribution and take distributions.

What the other commenters don't seem to understand, and which I think you are trying to say, is that you don't have enough liquidity outside the roth to pay for taxes or other living expenses. (Or you don't want to waste the other liquidity) If you couldnt take the distribution from the roth you'd have to sell stocks in a taxable account which would cause a liability. Instead you will sell the stocks within the roth, take the distributioms to pay your taxes on your other taxable income (not the roth) or other expenses and still be able to fund the roth.
Good luck.



What still makes no sense is if you have to pay taxes and fund a roth you have two liquidity issues. How do you have earned income to qualify and still have liquidity issues? Your attempted explanation still makes no sense. You may have an angle if you take your roth distribution as securities and sell them with adjusted basis outside of the roth
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Old 02-08-2015, 07:12 PM
 
291 posts, read 250,772 times
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not necessarily. He has liquidity to put in 6500 to a roth. He also wants to use roth funds as opposed to a taxable portfolio to fund other expenses. It's a nice situation to be in.
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