What Is IRS Form 5305-R?

IRS Form 5305-R is one of the required forms that a financial institution will ask you to complete when you open a Roth IRA. According to Dan Harding, CEO of Retirement Administration, Inc., the form is used to document the creation of a Roth IRA that meets the requirements of Internal Revenue Code section 408A. … Continued

Best Places to Roll Over a 401(k)

Quick Summary When deciding where to do a 401k Rollover, you’ll want to look at 1) fees, 2) investment choices and 3) customer service. First, you’ll need to decide if a 401(k) rollover is right for you. But once you’ve decided to move your money from an employer controlled 401(k) to an IRA that you … Continued

Where should I open a Roth IRA?

Almost all brokerage firms will offer a Roth IRA. You should consider a brokerage like Fidelity or E*Trade that offer low-cost funds. “Lifecycle” funds that automatically rebalance and adjust over time are especially good for Roth IRAs.

Who qualifies for a Roth IRA?

You can’t contribute to a Roth IRA if you make too much money. For singles, this starts at $118,000. For married couples, it is $184,000.

Why would I want a Roth IRA?

Roth IRAs are best when you think your taxes will be higher in retirement than they are right now. They can be especially good for young savers or in years when you don’t have much other income.