Comments on: Why Military Members Should Open Roth IRAs http://themilitarywallet.com/military-members-should-open-roth-ira/ Personal finance for military, veterans, and their families Fri, 18 May 2012 21:07:29 +0000 hourly 1 http://wordpress.org/?v=3.3.2 By: Ryan Guina http://themilitarywallet.com/military-members-should-open-roth-ira/comment-page-1/#comment-15358 Ryan Guina Tue, 08 Feb 2011 01:59:00 +0000 http://themilitarywallet.com/?p=382#comment-15358 Robert, I'm not sure how to handle this since it is mixed. I recommend speaking with a tax professional or investing professional to make sure you handle the paperwork properly. This is an occasion where it is well worth paying for professional advice! Robert, I’m not sure how to handle this since it is mixed. I recommend speaking with a tax professional or investing professional to make sure you handle the paperwork properly. This is an occasion where it is well worth paying for professional advice!

]]> By: Robert Lee http://themilitarywallet.com/military-members-should-open-roth-ira/comment-page-1/#comment-15357 Robert Lee Tue, 08 Feb 2011 00:09:53 +0000 http://themilitarywallet.com/?p=382#comment-15357 I have gross distribution which is made up by a taxable amount and tax exempt amount. I transferred it to a ROTH ira this year. How do I report this on 1040 ? I have gross distribution which is made up by a taxable amount and tax exempt amount. I transferred it to a ROTH ira this year. How do I report this on 1040 ?

]]> By: Britt (Your Roth IRA) http://themilitarywallet.com/military-members-should-open-roth-ira/comment-page-1/#comment-2270 Britt (Your Roth IRA) Tue, 16 Feb 2010 16:52:36 +0000 http://themilitarywallet.com/?p=382#comment-2270 Excellent article. Another noted difference between a Traditional IRA and a Roth IRA is that you can withdraw your original principal contributions tax-free and penalty-free at any time for any reason. Since after-tax money was used to fund your Roth IRA, those contributions aren't taxed or penalized if you withdraw them early (only the "earnings" on your contributions are subject to taxes and penalties). As a result, you have the flexibility to use your Roth IRA as an emergency fund, a college savings vehicle, or some additional function as you see fit (although it's probably best to stick with retirement). In addition, opening a Roth IRA offers good old-fashioned diversity for your retirement. In the decades ahead, you certainly can't count on social security for any meaningful retirement income, and given the state of U.S. budget deficits, the U.S. military pension system might see significant changes in the years ahead (especially for younger members). So it's a good idea not to have all of your eggs in one basket! Excellent article. Another noted difference between a Traditional IRA and a Roth IRA is that you can withdraw your original principal contributions tax-free and penalty-free at any time for any reason. Since after-tax money was used to fund your Roth IRA, those contributions aren’t taxed or penalized if you withdraw them early (only the “earnings” on your contributions are subject to taxes and penalties). As a result, you have the flexibility to use your Roth IRA as an emergency fund, a college savings vehicle, or some additional function as you see fit (although it’s probably best to stick with retirement).

In addition, opening a Roth IRA offers good old-fashioned diversity for your retirement. In the decades ahead, you certainly can’t count on social security for any meaningful retirement income, and given the state of U.S. budget deficits, the U.S. military pension system might see significant changes in the years ahead (especially for younger members). So it’s a good idea not to have all of your eggs in one basket!

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