Roth IRA ?

Question

I have about $5000 in a Roth IRA that I started about 5 years ago. Since then, I have married a wealthy man and due to our tax bracket, I cannot continue to contribute to it. Should I leave my money sitting there, or should I try to put it somewhere else? (Like my 401K?) I'm clueless! Suze Orman, are you there?

Answer 1

ABSOLUTELY, leave the money in Roth IRA.

You can't move the money from Roth IRA to 401k.  You might be able to rollover to Roth 401k if you company allows it, but most companies do not handle such rollover.   My suggestion is to open an Vanguard Roth IRA account, invest in Vanguard Target Retirement 2040 Fund and forget about it until you are ready for retirement.

Best wishes.

Answer 2

Absolutely leave it. If you take it out now, you will pay a 10% IRS penalty on it. No reason to do it if you are now wealthy. If you leave it, all of your gains will be completely untaxable (huge). Ask your husband if he has any untaxable investments. He doesn't. So if you take from your Roth account, you will pay 10% of it, and give up the advantage of paying no taxes on your gains. Just make sure it is invested aggressively if you are not immidiately retiring. Heavily in stocks for the best long term gains.