IRAs can feel complicated—rules, contribution limits, rollovers, tax breaks, and new investment options seem to change every year. We’ve compiled the most commonly asked questions with direct answers, all in one place. As you browse our guides, you might need quick clarity—chances are you’ll find it here. If not, contact us and we’ll add your question so other readers benefit, too.
There is an annual limit across all IRAs you own, with an additional catch-up amount if you’re 50+. Limits can change—always verify the current year’s numbers before contributing.
Eligibility depends on your MAGI and filing status. If you’re above the phase-out range, a legal “backdoor Roth” (non-deductible Traditional IRA contribution followed by a Roth conversion) may be an option—watch the pro-rata rule.
Yes, but your combined total can’t exceed the annual limit (including 50+ catch-up). Deductibility and Roth eligibility may phase out at higher incomes.
IRA contributions require earned income (wages or self-employment). A spousal IRA can allow a non-working spouse to contribute if the other spouse has sufficient earned income.
You can change how you allocate contributions (Roth vs Traditional) as long as you stay within limits and the custodian codes them for the correct tax year.
Traditional IRAs are subject to required minimum distributions beginning at a specified age (recent laws have increased the start age). Roth IRAs you own aren’t subject to RMDs, but inherited accounts follow their own rules.
Taking funds before age 59½ can trigger a 10% penalty plus taxes on pre-tax amounts. Some exceptions apply (first-home up to a capped amount, qualified education, certain medical expenses, etc.).
Contributions to a Roth can generally be withdrawn tax- and penalty-free. Earnings require meeting the 5-year and age/exception rules to avoid taxes and penalties.
You calculate the RMD for each Traditional IRA, but you can satisfy the total from one or multiple accounts. Roth IRAs you own have no RMDs; inherited IRAs differ.
Missing an RMD may result in an excise tax on the shortfall. Contact your custodian and tax pro promptly—there are correction steps and relief procedures you can pursue.
Yes—most custodians can set scheduled withdrawals to help you stay on track and reduce timing mistakes.
Request a direct trustee-to-trustee transfer. Funds never touch your hands, so there’s no 20% withholding and no risk of missing the 60-day deadline.
Indirect 60-day rollovers are limited to once per 12 months across all your IRAs. Direct transfers aren’t subject to that limit.
Yes, but pre-tax dollars converted to a Roth are taxable in the year of conversion. Some split the rollover between Traditional (no immediate tax) and Roth (taxable) to manage the bill.
If you do an indirect rollover and 20% is withheld, you must replace that amount within 60 days to avoid taxes on the withheld portion. Direct rollovers avoid this issue.
With SDIRAs (real estate, crypto, metals), coordinate closely with both custodians. Paperwork and asset titling must be exact to avoid prohibited transactions and delays.
If you expect higher tax rates later, Roth can make sense; if lower, a Traditional deduction today may be better. Your time horizon, income limits, and legacy goals also matter—run a few scenarios.
While “recharacterization” of prior Roth conversions is no longer available, you can adjust future contributions and consider partial conversions over time to manage taxes.
Traditional IRA deductibility can phase out based on income and whether you or a spouse are covered by a workplace plan. Non-deductible contributions create basis—track it carefully for future tax reporting.
Roth IRAs owned by you have no RMDs. Inherited Roth IRAs follow their own distribution timelines.
It can be useful for high earners, but the pro-rata rule can make conversions taxable if you have pre-tax IRA balances. Evaluate the math—or consult a tax pro.
Generally the tax filing deadline (not including extensions) for the prior tax year. Tell your custodian which tax year your contribution applies to.
You must deposit funds into the new IRA within 60 days for an indirect rollover. Missing it can create taxes/penalties. Direct transfers avoid this timing risk.
Yes—around the tax deadline, some investors make a prior-year and a current-year contribution in close succession. Confirm coding with your custodian.
IRAs don’t get tax-loss harvesting benefits like taxable accounts, but periodic rebalancing still helps manage risk. Choose a cadence (e.g., semiannual) and stick to it.