I am 53 years old, and I have a roth IRA with citibank, the money on my roth IRA was invested on CD account, and the CD will mature in May 2010. Can I transfer roth IRA to scottrade roth IRA(I don't have any scottrade accounts right now)? After I turn to 59 1/2 years old, can I trade stock within my scottrade roth IRA account? Can I take out my capital gain without tax?
Thanks.
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You want to go from investing in CD's to starting trading your IRA at 60 years old?
This is a bad idea.
You will not be able to transfer a bank CD to another institution until it matures.
I would begin filling out applications at the local grocer as you will prob end up needing a job after losing most if not all your money trading if you have no or substantial prior experience in the markets.
Taking money out of a Traditional IRA is subject to tax.
Only a Roth IRA is exempt to this with a 5 year holding.
I would not get any funny ideas at 60 and move the IRA to a Roth and think you can have it tax free. You would be taxed 100% on that move. Any withdrawal from a traditional IRA is subject to ordinary income tax.
example:
You took out $50,000
Your transferred $50,000 from a IRA to a Roth.
Outcome is the same.
Result:
Over age 59 1/2:
100% of the funds will be added to your income to that year, and thus taxed on the whole.
Under 59 1/2:
The above plus 10% penalty on the gross amount. In this example, a $5,000 additional tax.
If you want to have $ left for retirement, I would seek a professional advisor with 15+ years experience in the markets to help you from making these highly risky and poor investment decisions because clearly you have no idea what you are doing.
Get help.
Good Luck!
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edit:
note the other poster has no clue what he is talking about either. He did not read the question correctly. The above is the correct answer. Or simply ignore this and see what happens.
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edit 2: (per emailed Q) (edited for grammar)
You can trade all you want in an IRA or Roth. No cap gains tax in a Roth after holding for 5 years, and 59 1/2+ age.
However there is no margin ability of any kind in an IRA. Day trading rules apply.
If you take an IRA and roll it over to a Roth, 100% of that IRA is subject to ordinary income tax on all non-principle contributions in the same year it is rolled. Generally not advised. See a CPA before making tax decisions.
I would be really careful. Didn't mean to be harsh, but I have I have seen a lot of people get wiped out who started trading with their retirement accounts.
Good Luck!
Before your CD matures, you should be able to set up a Roth IRA account at Scottrade (or whatever broker), and have them initiate the direct transfer from the Citibank Roth IRA CD for the date when it matures. I did that from a Fidelity IRA for an IRA CD at Chase.
You don't really want to hold it in a regular non-retirement savings account because that might trigger some withholding for unqualified gains.
As long as you are old enough to trade stocks in general, you do not have to be any certain age to invest in or trade stocks in. I started trading stocks in my IRA, along with gradual IRA to Roth IRA conversions, in 2005 at age 55, so I will know how to invest my 401k when I am able to retire and transfer that out of my company plan.
Yes you can move a ROTH IRA from Citi to Scottrade. You will have to wait for the CD to mature, otherwise there will be a penalty for early redemption. When the CD matures tell Citi not to renew it and put the money into a savings account so it can be easily withdrawn. Then contact Scottrade and they will guide you on the transfer forms you need to fill out.
You can trade stocks in an IRA.
You can withdraw money from a ROTH IRA tax free after age 59 1/2. You will have exceeded the 5 year requirement.
53 years old is not too late to invest in stocks. With a life expectancy of 25 to 40 years, I think stocks are a better choice than CDs. You would not want to make speculative investments. But beating the return on a CD is not difficult.
Yes, an IRA can be easily transferred. Set up the new account with Scottrade (or whatever custodian you wish) and have them do a direct custodian-to-custodian transfer.
You can make transactions within an Roth IRA without tax capital gains, regardless of your age. You can make tax-free and penalty-free withdrawals once you reach age 59 1/2 as long as you have had a Roth IRA for at least five years (regardless of how many accounts or custodians).
You can make money in binary options only if you treat it as a real form of investing. Learn here https://tr.im/2DgV2
This means learning how it works, learning how to read charts and learning how you can make accurate predictions. All these are not that difficult but it takes some time. If you treat it as gambling and just make random predictions then you will obviously not win.
Www.scottrade
Www.scottrade.com
Lots of great answers already for this
I haven't really thought about it