cute fuzzy bunny
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Those of us without earned income (aka, a paycheck) can still contribute to Roth IRA's, although you have to pay a 6% "excise tax" on the contributions you make.
Whats the take on this? Is it worth it to basically pay a 6% front load on a roth? Considering i'm 42 and having some time before I'd be withdrawing, would an investment in a roth in something like vanguards TIPS fund make any sense at all? Its not like its a huge sum of money, $180 a year for a $3000 investment.
Whats that anyway, about 90 boxes of dryer sheets?
I'm somewhat pressed to make this decision after convincing my girlfriend to open a roth and making a sympathetic equivalent investment, only to discover while doing my taxes that the IRS doesnt consider any of my income 'earned'.
Funny, I thought I earned it. I dont remember the money fairy showing up and dropping off a bag of cash.
Anywho, I can either withdraw the money now before the april filing deadline with no particular penalties as an "oops" and simply take the small short term gain, or pay the 6% "excise tax".
What thinks all of you?
Whats the take on this? Is it worth it to basically pay a 6% front load on a roth? Considering i'm 42 and having some time before I'd be withdrawing, would an investment in a roth in something like vanguards TIPS fund make any sense at all? Its not like its a huge sum of money, $180 a year for a $3000 investment.
Whats that anyway, about 90 boxes of dryer sheets?
I'm somewhat pressed to make this decision after convincing my girlfriend to open a roth and making a sympathetic equivalent investment, only to discover while doing my taxes that the IRS doesnt consider any of my income 'earned'.
Funny, I thought I earned it. I dont remember the money fairy showing up and dropping off a bag of cash.
Anywho, I can either withdraw the money now before the april filing deadline with no particular penalties as an "oops" and simply take the small short term gain, or pay the 6% "excise tax".
What thinks all of you?