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You can only put earned income into a Roth, you can only put up to 6K per year, and you are only eligible to put anything at all for a given year if your total
by caddemon 5y ago
You can only put earned income into a Roth, you can only put up to 6K per year, and you are only eligible to put anything at all for a given year if your total earned income was below a fairly modest threshold. Roth IRA already has plenty of restrictions. The fact that one man happened to be some combo of smart/lucky to make the modest initial investment turn into billions is definitely not an indication of whether the Roth is problematic. I think the parent may be confused about the exact details of a Roth.
- studentrob 5y agoYou can rollover to get around contribution limits [1], and the government gets your money now rather than later, > A Roth IRA rollover (or conversion) shifts money from a traditional IRA or 401(k) into a Roth. You can get around Roth IRA income limits by doing a rollover. You'll owe tax on any amount you convert, and it could be substantial. Limiting the max amount would reduce near-term government tax revenue. So I don't think it would happen. [1] https://www.investopedia.com/how-to-do-a-rothira-rollover-4770219#:~:text=A%20Roth%20IRA%20rollover%20(or,and%20it%20could%20be%20substantial https://www.investopedia.com/how-to-do-a-rothira-rollover-47....
- caddemon 5y agoInteresting, I thought there was an income limit on rollover as well but apparently that was axed in 2010. In any event Thiel couldn't have used this.