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Two IRAs, two different rules (2018/4/2 更新)

(2017-07-04 11:19:34) 下一个

You have to have an earned income before you can contribute to an IRA.  Non earned taxable income can not be used for this, like rental income, interest or divident income, etc.

Roth IRA:
Contribution: after tax money.

Contribution limit: $5,500 or over age 50 $6,500 in 2018
Withdrawal: after the age of 59.5, no panelty.  No tax if you follow the rules and no withdrawal limit if the Roth IRA account has been open for at least 5 years.

The IRS link for Roth IRA information:

https://www.irs.gov/retirement-plans/roth-iras

The following is rough calculation of Roth IRA contributions and returns based on S&P500 index returns.

Roth IRA from the beginning

Date

S&P 500 Close

Return %

Contribution

Cumulative Gain

Dec-97

970

   

2,000

Dec-98

1,229

27%

2,000

2,533

Dec-99

1,469

20%

2,000

5,419

Dec-00

1,320

-10%

2,000

6,666

Dec-01

1,148

-13%

2,000

7,536

Dec-02

880

-23%

3,000

8,074

Dec-03

1,112

26%

3,000

13,996

Dec-04

1,212

9%

3,000

18,524

Dec-05

1,248

3%

4,000

23,200

Dec-06

1,418

14%

4,000

30,905

Dec-07

1,468

4%

4,000

36,137

Dec-08

903

-38%

5,000

25,305

Dec-09

1,115

23%

5,000

37,413

Dec-10

1,258

13%

5,000

47,834

Dec-11

1,258

0%

5,000

52,832

Dec-12

1,426

13%

5,000

65,585

Dec-13

1,848

30%

5,500

92,127

Dec-14

2,059

11%

5,500

108,748

Dec-15

2,044

-1%

5,500

113,418

Dec-16

2,239

10%

5,500

130,256

Dec-17

2,674

19%

5,500

162,120

Traditional IRA:
Contribution: pre-tax money.

Contribution limit: $5,500 or over age 50 $6,500 in 2018
Withdrawal: after the age of 59.5, no panelty.  Pay tax at ordinary income tax rates.  There is RMD (Required Minimum Distribution) at the age of 70.5.

Here is the IRS link for Traditional IRA information:

https://www.irs.gov/retirement-plans/traditional-iras

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评论
hhtt 回复 悄悄话 回复 '若雨' 的评论 : Roth IRA 里面增值收益部分是不用交税的。 设立账号5年之后,而且年龄是59.5岁,取出来没有限制!如果年龄不到59.5岁,就只能取放进去的那部分。
若雨 回复 悄悄话 请问Roth IRA里面增值收益部分是怎么交税的?设立账号5年之后取出来没有限制吗?还是有其他withdraw条件?谢谢,非常有用的信息。
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