Author Topic: Roth IRAs?  (Read 5663 times)

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Ellen B.

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Roth IRAs?
« on: Dec 10, 2006, 07:03 pm »
I've done a search on this and only came up with hbelden's post on 401ks.  I will be a new member of AEA as of next week and have been exploring the Equity website.  I see that it is possible to set up a 401K through them but would prefer to have a Roth IRA.  Is it possible to do this through Equity or would I need to join a plan on my own?

Jessie_K

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Re: Roth IRAs?
« Reply #1 on: Dec 10, 2006, 07:20 pm »
These are two separate things:

AEA sets up a pension for you that is paid for by your employer just like the insurance.  This does not really add up to a lot of money and you really should set up a separate plan if you ever hope to retire.

Actors' Federal Credit Union (which you are eligible to join as a member of AEA and is located in the AEA office area) works like any other credit union.  You can set up checking and savings accounts as well as apply for loans and set up any number of IRAs.

To set up an IRA you need to go to the 4th floor and make an appointment to see the financial advisor. 

I have set up a Roth IRA for myself through them.

Roth IRAs have limits on how much you can contribute per year.  If you want to invest more you need to set up a different type of IRA or Money Market account.

LisaEllis

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Re: Roth IRAs?
« Reply #2 on: Dec 11, 2006, 11:57 am »
Roth IRAs are a great investment, and can be made thru MANY financial institutions and brokerage firms.  I would suggest doing some research on different places for rates.  For example, our IRAs are thru an insurance and investment company that gets GREAT returns.  But these are contributions you have to make yourself, not deducted from your paycheck.

My husband contributes to a Roth in addition to his employer's 403b, and I contribute to a traditional IRA to take the tax deduction.

The great thing about the traditional is that we take the deduction now, and will be able to take out up to $10,000 EACH from our accounts for a first time home purchase.  When we do, we have to pay the income tax on it, but not any additional penalties.  And because I am often self-employed, it helps reduce my Social Security tax.

Good luck!

LisaEllis

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Re: Roth IRAs?
« Reply #3 on: Dec 16, 2006, 12:52 am »
Depending on how the account is set up, you can make your deposits at any time of the year.  Deposits for the 2006 tax year must be made before April 15, 2007 or they go to the 2007 tax year.  So you still have some time to save up!

The Roth is great because you pay tax now, but not when you take out the proceeds.  The traditional gets the tax break now, but you pay when you take it out.  Both kinds have annual limits on how much you can contribute.

Jessie_K

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Re: Roth IRAs?
« Reply #4 on: Dec 17, 2006, 11:00 am »
I was told you can't contribute to a Roth IRA directly from your AEA paycheck (like you can with the 401k).  Do you make your deposits separately at the end of the year? 



No they can't take directly out of your paycheck.  But you can pay by check at the end/ beginning of the year.  You can also split it up and pay in several chunks.  There is usually a minimum you can pay at a time and all contributions must not go over your per year total.

Ellen B.

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Re: Roth IRAs?
« Reply #5 on: Dec 17, 2006, 01:44 pm »
Thanks, guys.  The reason that I am attracted to ROTHs is the fact that the tax comes out now, rather than in the future when I'm sure the rates will be higher.  I do have some money in money markets/ various other places and the time has come to sort it all out and set up an IRA of some sort.  There is a whole lot of information to go through on this topic and I'm going to return to checking it out once I have completed prepping for my show.

One of the things that I need to look into is how much of this can be handled online.  I'm assuming that the specific offices that you are mentioning are New York offices (and I'm in the Baltimore area).

ljh007

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Re: Roth IRAs?
« Reply #6 on: Jan 20, 2007, 10:05 am »
Most major investment firms are nationwide, have online account management, and offer IRAs. To find a few, and to learn more about IRAs and other investments in general, check out The Motley Fool at www.fool.com.

My IRA is through McDonald Investments, which was recently acquired by Key Investments. It has performed excellently for the handful of years I've had it. (I'm not AEA though; I just set up this account on my own.)

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