Investing General Discussion

Sanrith Descartes said:

The other use is to take money from an existing IRA/401k (from a previous employer perhaps) and roll it over to a Roth (paying the taxes if any). The idea being if you have an event that puts you in a low tax bracket for a given year, it might be beneficial to pay that low tax rate to Roth the funds now to make them tax free in retirement.

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Yeah, I wouldn't mind a bad year to do this in. My dad did this in the interim between retiring from his corporate jobs and opening a consultancy. Made bank in tax savings. Sadly, things are going well for me and my wife. #firstworldproblems

Don't remember seeing this discussed before. I'm looking for a catch. I haven't maxed this years (Roth)ira yet, should I move the rest of my contributions to a new IRA in Robinhood?

fris said:

IRA match FAQ

IRA match FAQ

robinhood.com

Don't remember seeing this discussed before. I'm looking for a catch. I haven't maxed this years (Roth)ira yet, should I move the rest of my contributions to a new IRA in Robinhood?

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From Reddit:

"A couple things of note for those looking at using RH to capture the 1% match. The match only applies to contributions that come from an external linked bank account. If you already have money in a regular taxable Robinhood brokerage account and use it to fund your IRA, Robinhood won't give you the match. Similarly, IRA rollovers and transfers from existing IRAs elsewhere aren't eligible for the match because they don't qualify as contributions.
Also, in certain situations, you'll have to give up the matched amount. If you transfer your entire IRA away from Robinhood within five years of the contribution that earned the match, you'll have to pay an early IRA match removal fee that essentially pays back what Robinhood initially put into your account.
Moreover, partial withdrawals can also result in the fee that takes away the match. Withdrawals within five years that take your total IRA balance below the amount that you contributed will result in Robinhood charging the IRA match removal fee, which can take away all or part of the match. However, this leaves open the possibility of being able to withdraw amounts that represent earnings and gains above the initial contribution amount and still not having to forfeit any of Robinhood's match."

You can decide if $65 (1% * $6500) is enough to have your money locked into RobinHood for 5 years. It wouldn't be for me. You probably lose the bonus in fee differentials.

I’m commission only and I knew my first year would be slower than future years. The market also just shit itself (2022) and my opportunity for converting a giant chunk of my IRA to Roth was real, but I pussed out.

I still made around 150 household, so it wasn’t a complete no brainer, and it’s possible I’ll do it in chunks of 100 if it’s still around when I’m older / reduce income.

IWM also down 1.6% today isn't confidence inspiring. This has been the leading indicator for months now. In the same boat as Blazin in that I am waiting to see how the first real pullbacks are treated. Need to see some buying demand to add anything back.

Gravel was obviously biased and/or hopeful for his retirement account. I dunno what to say about Sanrith Descartes , maybe trying the price is right method of bidding 1?

Fogel said:

Gravel was obviously biased and/or hopeful for his retirement account. I dunno what to say about Sanrith Descartes , maybe trying the price is right method of bidding 1?

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Nah, my post explained it, but historically we should've had a very strong year to follow up the last few. Usually we get a much bigger bounce after a 20%+ down year.

I blame the complete ineptitude of basically everyone in government pushing the scales and fucking up the natural market tendencies.