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With a Roth IRA, your investments grow tax-free, provided you follow the rules, which can make compound interest even more beneficial.” ... Compound Interest Calculator, Investor.gov. Accessed ...
The $2,000 excess contribution effectively generated a net loss of $666.67 which must be excluded from the excess removal. To bring the IRA back within the contribution limits, only $1,333.33 instead of $2,000 need to be removed ($2,000 - $666.67 = $1,333.33).
You made a $2,000 deductible contribution to your IRA, paid $3,000 in student loan interest and had $5,000 in HSA contributions. In this case, your AGI would be $60,000 less $10,000 ($2,000 ...
Plan ahead: Before the year starts, I look at the new contribution limits and calculate how much I need to contribute every month for 12 months to achieve my goal.
To calculate approximately how much interest one might earn in a money fund account, take the 7-day SEC yield, multiply by the amount invested, divide by the number of days in the year, and then multiply by the number of days in question. This does not take compounding into effect.
A Roth IRA conversion involves transferring retirement assets into a new or existing Roth IRA account. The types of accounts eligible for conversion generally fall into one of two categories.
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