Roth IRA

B

BLC

I am 54 years old and going to open a Roth IRA before the end of this year. The plan is to retire at 55 and then roll my tax deferred 401K into the Roth and then trade with that (I know that will trigger taxes on the rollover but I do believe taxes will be much higher if I wait longer).

I wish to trade level 2 options with NO MARGIN. I will be selling cash secured puts and covered calls as this strategy has been working very well for me in my Etrade account as a means of generating income - enough so that can retire early.

Not sure I wish to stick with Etrade as their cellphone trading app is a little flaky and there have been a couple of times I was unable to exit a trade due to market volume bringing them to their knees temporarily.

With WHOM do you recommend setting up my Roth IRA with and why? I must be able to trade options in that account.

Thank you, and yes this is my first post I just found you guys while trying to search for information.
 
Option level 2 is buying options and includes L1 which is selling calls vs long stock. Selling puts is option level 4. We do not offer option level 4 for IRA/ROTH IRA but a buy-write has the same risk/profit potential and cash requirement.
 
BLC said:
I am 54 years old and going to open a Roth IRA before the end of this year. The plan is to retire at 55 and then roll my tax deferred 401K into the Roth and then trade with that (I know that will trigger taxes on the rollover but I do believe taxes will be much higher if I wait longer).
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Why not rollover into a traditional IRA and then scale into a Roth to avoid the big tax hit?
 
BLC said:
I am 54 years old and going to open a Roth IRA before the end of this year. The plan is to retire at 55 and then roll my tax deferred 401K into the Roth and then trade with that (I know that will trigger taxes on the rollover but I do believe taxes will be much higher if I wait longer).

I wish to trade level 2 options with NO MARGIN. I will be selling cash secured puts and covered calls as this strategy has been working very well for me in my Etrade account as a means of generating income - enough so that can retire early.

Not sure I wish to stick with Etrade as their cellphone trading app is a little flaky and there have been a couple of times I was unable to exit a trade due to market volume bringing them to their knees temporarily.

With WHOM do you recommend setting up my Roth IRA with and why? I must be able to trade options in that account.

Thank you, and yes this is my first post I just found you guys while trying to search for information.
More...

You understand that you are not permitted tax-free withdrawals from a Roth unless your account has been funded for 5 years?
 
Twice I have rolled over 401Ks to Roth IRAs. I first rolled them to regular IRAs, then to Roth IRAs. If it is a large amount you don't want to screw it up. A few hundred bucks paid to a CPA (who knows what they are doing) can pay off in the long run...Lay it out for you.

Not endorsing any company...But, if you have a relationship with Etrade you may want to stay with them...Just because you know their platform. With all companies their systems can go down. I believe people have accounts at different brokers to protect against uncovered positions...Systems do go down.

Etrade has their own dedicated people who do IRAs and Roth IRAs all day long. They know the ins and outs of the IRA process. But, they CAN NOT practice law or give tax advice!! So do others, Schwab, Fidelity, IB.

This is just me and my wife. In years we made small incomes (losses on farm, rentals, investments) we would put the most into the Roth IRA. In years we made a killing, we would put little to nothing in. Each year we would check the tax bracket to know what the amount would be (tax hit).
 
Cabin111 said:
Twice I have rolled over 401Ks to Roth IRAs. I first rolled them to regular IRAs, then to Roth IRAs. If it is a large amount you don't want to screw it up. A few hundred bucks paid to a CPA (who knows what they are doing) can pay off in the long run...Lay it out for you.

Not endorsing any company...But, if you have a relationship with Etrade you may want to stay with them...Just because you know their platform. With all companies their systems can go down. I believe people have accounts at different brokers to protect against uncovered positions...Systems do go down.

Etrade has their own dedicated people who do IRAs and Roth IRAs all day long. They know the ins and outs of the IRA process. But, they CAN NOT practice law or give tax advice!! So do others, Schwab, Fidelity, IB.

This is just me and my wife. In years we made small incomes (losses on farm, rentals, investments) we would put the most into the Roth IRA. In years we made a killing, we would put little to nothing in. Each year we would check the tax bracket to know what the amount would be (tax hit).
More...

I should also say, in years we made a killing, we would fund our IRAs, Keogh, and 401Ks to the max...
 
lindq said:
You understand that you are not permitted tax-free withdrawals from a Roth unless your account has been funded for 5 years?
More...

Yes, which is why I must open my Roth this year at 54 so I can withdraw at 59 1/2. Some people tell me to roll into a standard IRA but if I do that I cannot access the money at 59 1/2 and there will be required distributions later. I do not want to be told what to do with my own money. The mutual funds in my 401k have high fees and I only have an 8% return over 25 years. I make more than 8% monthly now in my self managed trading account. I have to take control of this.
 
fan27 said:
Why not rollover into a traditional IRA and then scale into a Roth to avoid the big tax hit?
More...

What does "scale" mean in this instance? I can only deposit 7k a year into my Roth which is terrible.
 
When I had my own BD, I had a profit-sharing plan. I shut down that BD when I was 50 years old. I went through a number of years with materially lower income in my transition to sales. During those years, I would move blocks of cash to my Roth IRA, paying a very low tax rate. Today I'm 60 years old and only invest or trade-in my Roth. I love it that I do not have to report trades at year-end and know that I will never have to pay taxes in the future on this money if I ever take it out. For me, it worked as expected. I'm VERY happy with that planning and that decision.
 
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