tag:blogger.com,1999:blog-2800029095243726187.post4657286409104980159..comments2024-02-10T04:36:02.792-05:00Comments on Dividend Growth Machine: Roth IRADividend Growth Machinehttp://www.blogger.com/profile/13304571550687216360noreply@blogger.comBlogger8125tag:blogger.com,1999:blog-2800029095243726187.post-78709511146276551332013-02-15T14:45:21.624-05:002013-02-15T14:45:21.624-05:00Anonymous: Thanks for the tip. The taxes are unfor...Anonymous: Thanks for the tip. The taxes are unfortunate, but I will save some cash to pay for them.Dividend Growth Machinehttps://www.blogger.com/profile/13304571550687216360noreply@blogger.comtag:blogger.com,1999:blog-2800029095243726187.post-83271258302491192672013-02-15T14:28:40.375-05:002013-02-15T14:28:40.375-05:00I am sure you already know, but make sure to figur...I am sure you already know, but make sure to figure all the taxes when you do your direct Roth IRA conversion I estimated my rate based on my federal rate. In fact it includes all the taxes (federal/state/social sec./medicare).<br /><br />Just FYIAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-2800029095243726187.post-30527181649349282352013-02-02T14:24:02.204-05:002013-02-02T14:24:02.204-05:00CI: Thanks for your comment. I learned that rollov...CI: Thanks for your comment. I learned that rollover money is not counted as a "contribution," which has two consequences. First, it means I can still make a direct contribution of $5,500 for 2013. Second, it means I cannot withdraw the rollover money without penalties (but I can still do early withdrawals of my direct contributions, if necessary).<br /><br />I also have my taxable account and Roth IRA at the same brokerage. They are treated as separate but linked accounts, so I don't get a combined summary.<br /><br />I am pleased that the rollover should work out nicely for tax purposes by doing it in 2013 instead of later. There's no point giving the IRS more money than I need to!Dividend Growth Machinehttps://www.blogger.com/profile/13304571550687216360noreply@blogger.comtag:blogger.com,1999:blog-2800029095243726187.post-35951260619362806112013-02-02T14:13:11.150-05:002013-02-02T14:13:11.150-05:00DM: Thanks for your comment. Your reasons for not ...DM: Thanks for your comment. Your reasons for not having a Roth IRA make sense. Due to the annual contribution limits, I don't anticipate it being a major source of my future dividend income, but it will help a bit in reducing my future taxes.Dividend Growth Machinehttps://www.blogger.com/profile/13304571550687216360noreply@blogger.comtag:blogger.com,1999:blog-2800029095243726187.post-16989538499690574982013-02-02T14:10:04.392-05:002013-02-02T14:10:04.392-05:00HYS: Thanks -- it will be nice to have a small but...HYS: Thanks -- it will be nice to have a small but tax-efficient "mini-machine" to go along with my main dividend growth machine.Dividend Growth Machinehttps://www.blogger.com/profile/13304571550687216360noreply@blogger.comtag:blogger.com,1999:blog-2800029095243726187.post-69244795144680039752013-02-02T10:47:59.682-05:002013-02-02T10:47:59.682-05:00If I really do reach early retirement, I plan to s...If I really do reach early retirement, I plan to spend the dividends in my ROTH the same as my taxable account. Just have to be careful not to withdraw more than I originally contributed. Since I've already been funding my ROTH for about 5 years, and plan to work about 15 more, it should provide nice income for an early retirement. <br /><br />I do not know if a 401k rolled over to an IRA, rolled into to a ROTH IRA would count as contributions you can withdraw early. You might want to look into that before hand. I'm sure you have some investment gains there.<br /><br />I have both my taxable and ROTH with the same brokerage which allows me to view them as one. That's why I don't seperate it on my blog.<br /><br />Smart move to do the rollover in 2013, before your income increases 2014 from a full year at the new job! Genius!Compounding Incomehttps://www.blogger.com/profile/04207986983526689578noreply@blogger.comtag:blogger.com,1999:blog-2800029095243726187.post-32282797047308004112013-02-02T01:02:59.490-05:002013-02-02T01:02:59.490-05:00DGM,
Good stuff. I may be in the minority here by...DGM,<br /><br />Good stuff. I may be in the minority here by not actively choosing not to participate in a ROTH or other IRA, but it sounds like you did a thorough analysis and this will work out best for you in the long run. A ROTH is a fantastic tool, so I'm glad you'll be using it to your advantage.<br /><br />I find that by living on less than $30k a year in dividends I'll be paying a very low amount of income taxes anyway, not to mention the fact that I'll be paying $0 in Medicare/SS or other payroll taxes. I live in Florida, so no state or city income tax either. Yay!<br /><br />Glad to see you have the job hunt behind you and now you can look forward to some stability. Sounds like this is a great move for you.<br /><br />Best wishes!Dividend Mantrahttp://www.dividendmantra.comnoreply@blogger.comtag:blogger.com,1999:blog-2800029095243726187.post-72486092521714340892013-02-01T22:35:12.428-05:002013-02-01T22:35:12.428-05:00Good move...I think its too easy to focus on the e...Good move...I think its too easy to focus on the early retirement mantra and forget about the huge bite the tax man will be taking every year, its smart to diminish thatHigh Yield Soldierhttps://www.blogger.com/profile/12017125777528997648noreply@blogger.com