Results 1 to 15 of 15

Thread: Roth IRA and Good Credit?

  1. #1
    Veteran Member Stipperella's Avatar
    Joined
    Nov 2003
    Location
    Texas
    Posts
    628
    Thanks
    0
    Thanked 1 Time in 1 Post

    Default Roth IRA and Good Credit?

    I tried to open up a roth ira on scottrade.com and i got rejected because of my credit. I had no idea that credit counted to open up an ira. Is this true or did i do something wrong?

    Edited to add that i already know what i did wrong, lol NEVERMIND
    Last edited by Stipperella; 01-10-2006 at 02:10 PM.

  2. #2
    God/dess montythegeek's Avatar
    Joined
    Oct 2003
    Posts
    2,103
    Thanks
    0
    Thanked 9 Times in 5 Posts

    Default Re: Roth IRA and Good Credit?

    What did you do wrong, may I ask? Say you had no income? Say you were 85? Spell your name wrong? Say you were a professional terrorist or worked for a competitor? Inquiring minds want to know.

  3. #3
    God/dess Bunny's Avatar
    Joined
    Feb 2003
    Posts
    2,495
    Thanks
    1
    Thanked 36 Times in 30 Posts

    Default Re: Roth IRA and Good Credit?

    I didn't know you needed good credit to open up an IRA either. I have been meaning to open one but haven't had the money to put into it yet.

  4. #4
    God/dess
    Joined
    Jan 2003
    Location
    Arizona
    Posts
    2,993
    Thanks
    39
    Thanked 12 Times in 11 Posts

    Default Re: Roth IRA and Good Credit?

    You must be mistaken, brokerages don't do credit checks. Did they perhaps have a minimum balance that you could not meet? Is your income too high? Did they try to push you into a SEP IRA instead? There has to be another explanation.

  5. #5
    God/dess
    Joined
    Jan 2003
    Location
    Arizona
    Posts
    2,993
    Thanks
    39
    Thanked 12 Times in 11 Posts

    Default Re: Roth IRA and Good Credit?

    Quote Originally Posted by Stipperella
    Edited to add that i already know what i did wrong, lol NEVERMIND
    Oops, I missed that part.

  6. #6
    Member
    Joined
    Nov 2005
    Posts
    47
    Thanks
    0
    Thanked 1 Time in 1 Post

    Default Re: Roth IRA and Good Credit?

    i didn't know that credit even mattered with IRAs. I was under the impression you could open one if you had the minimum amount to put in it ($2000).

    Am I wrong?

  7. #7
    Featured Member Vamp's Avatar
    Joined
    Jul 2004
    Location
    Missouri
    Posts
    1,111
    Thanks
    271
    Thanked 757 Times in 289 Posts

    Default Re: Roth IRA and Good Credit?

    No you are not wrong. Credit worthiness is not a factor when opening up an IRA of any kind. There are many kinds of IRA's that can be opened with any dollar amount. I opened a basic daily IRA with $20.00. That IRA can be rolled over into a Roth IRA. Check with a finicial advisor or institution for details.

    Originally Posted by Stipperella
    Edited to add that i already know what i did wrong, lol NEVERMIND

  8. #8
    Banned Melonie's Avatar
    Joined
    Jul 2002
    Location
    way south of the border
    Posts
    25,932
    Thanks
    612
    Thanked 10,563 Times in 4,646 Posts
    Blog Entries
    3
    My Mood
    Cynical

    Default Re: Roth IRA and Good Credit?

    the only way that I can conceive a connection between opening an IRA (in any form) and credit rating check is that in some states IRA money has traditionally been exempt from confiscation by the court during bankruptcy proceedings. Thus there might be some concern that a person with a rotten credit rating attempting to open an IRA with a significant amount of cash might in reality be trying to 'shield their assets' from an impending bankruptcy. I know that the bankruptcy laws were changed significantly last October, but I have no particulars whatsoever as to how gov't backed retirement money might factor in.

  9. #9
    Featured Member Vamp's Avatar
    Joined
    Jul 2004
    Location
    Missouri
    Posts
    1,111
    Thanks
    271
    Thanked 757 Times in 289 Posts

    Default Re: Roth IRA and Good Credit?

    This came up recently for a client. IRAs are no longer exempt from bankrupty. Actually nothing is. In the new laws you have pay a portion of your debt back. The only way to be cleared free of all your debit is now chapter 7. Under the new chapter 7 all assets are seized house, car, accounts, etc liquidated and divided amoung your creditors. You start fresh but with nothing else either.

  10. #10
    God/dess threlayer's Avatar
    Joined
    Aug 2003
    Location
    Syracuse
    Posts
    5,921
    Thanks
    369
    Thanked 419 Times in 290 Posts
    My Mood
    Fine

    Default Re: Roth IRA and Good Credit?

    Bankruptcies were too easy. I just hope that charges for risk (credit) come down to a more reasonable level someday, reflecting the reduced risk from future bankrupties. But I won't hold my breath.
    I loved going to strip clubs; I actually made some friends there. Now things are different for the clubs and for me. As a result I am not as happy.

    Customers are not entitled to grope, disrespect, or rob strippers. This is their job, not their hobby, and they all need income. Clubs are not just some erotic show for guys to view while drinking.

    NOTE: anything I post here, outside of a direct quote, is my opinion only, which I am entitled to. Take it for what you estimate it is worth.

  11. #11
    God/dess FrustratedBunny's Avatar
    Joined
    Jan 2006
    Location
    New Orleans, LA
    Posts
    2,457
    Thanks
    0
    Thanked 4 Times in 4 Posts

    Default Re: Roth IRA and Good Credit?

    So is scottrade.com a good place to open an IRA? I tried to open one on some site (can't recall where) and I got totally confused and gave up.

  12. #12
    God/dess Deogol's Avatar
    Joined
    Dec 2003
    Posts
    5,493
    Thanks
    120
    Thanked 50 Times in 35 Posts

    Default Re: Roth IRA and Good Credit?

    Quote Originally Posted by threlayer
    Bankruptcies were too easy. I just hope that charges for risk (credit) come down to a more reasonable level someday, reflecting the reduced risk from future bankrupties. But I won't hold my breath.
    Don't get me started.

    I do suspect we will start seeing people putting money into the Cayman Islands before a bankruptcy though!!!

    The creditors will merely pick the bones of their new found credit slaves working 40 years to pay off their debts.

    Hope that taco was a good one (refers to a commercial.)

  13. #13
    Banned Melonie's Avatar
    Joined
    Jul 2002
    Location
    way south of the border
    Posts
    25,932
    Thanks
    612
    Thanked 10,563 Times in 4,646 Posts
    Blog Entries
    3
    My Mood
    Cynical

    Default Re: Roth IRA and Good Credit?

    IRAs are no longer exempt from bankrupty. Actually nothing is.
    Actually, the most recent SC ruling I can find on the subject indicates that 'qualifying' retirement plans ARE still exempted from liquidation to satisfy bankruptcy creditors.



    " WASHINGTON - The Supreme Court gave bankrupt Americans another layer of financial protection Monday, ruling that creditors cannot seize their individual retirement accounts.

    The unanimous decision secures a nest egg relied upon by millions of people. The justices said IRAs should join pensions, 401(k)s, Social Security and other benefits tied to age, illness or disability that are afforded protection under federal bankruptcy law. Many states lacked the shield available in Florida, where IRA assets have long been exempt from creditors' claims.

    Justice Clarence Thomas, writing for the court, said a bankrupt Arkansas couple was entitled to keep more than $55,000 in retirement savings from creditors. He reasoned that IRAs are benefits tied to a person's age under the federal statute because a tax penalty is imposed if a person makes withdrawals before age 60.

    "That penalty erects a substantial barrier to early withdrawal," Thomas wrote. "Funds in a typical savings account, by contrast, can be withdrawn without age-based penalty."

    The ruling affects 16 states and the District of Columbia, which do not have their own state laws protecting IRAs. The remaining 34 have separate state laws on bankruptcy protection, with a few of those, including New York, California and Iowa, that have language mirroring the federal bankruptcy statute.(snip)".

    Again I'm certainly no attorney, but the criteria used in the Rousey vs Jacoway decision appears to include any 'qualified' pension plant whose structure carries a substantial early withdrawl penalty. This would imply that Conventional and SEP IRA's are exempted from bankruptcy liquidation, but that Roth IRA's are not.

    I do suspect we will start seeing people putting money into the Cayman Islands before a bankruptcy though!!!

    The creditors will merely pick the bones of their new found credit slaves working 40 years to pay off their debts.
    Well, the US gov't via international banking treaties seems to be trying their damndest to make the opening of offshore bank accounts by US citizens as expensive and difficult as possible. As it is, in order to open a Cayman account, today you essentially have to show up in person at a Cayman bank with cash you carried across the US border yourself.

    Also, the 'wage slave' period is reported to be 5 years not 40 ... however, after court ordered liquidation of essentially all of one's assets, plus five years of court ordered continued payments of every discretionary dollar one earns to previous creditors, you're absolutely correct that future bankruptcy filers will probably emerge from the procedure with absolutely nothing to work with in terms of money saved or credit rating.

  14. #14
    God/dess threlayer's Avatar
    Joined
    Aug 2003
    Location
    Syracuse
    Posts
    5,921
    Thanks
    369
    Thanked 419 Times in 290 Posts
    My Mood
    Fine

    Default Re: Roth IRA and Good Credit?

    Medical and credit card debt are two of the most common bankruptcy-starters.
    I loved going to strip clubs; I actually made some friends there. Now things are different for the clubs and for me. As a result I am not as happy.

    Customers are not entitled to grope, disrespect, or rob strippers. This is their job, not their hobby, and they all need income. Clubs are not just some erotic show for guys to view while drinking.

    NOTE: anything I post here, outside of a direct quote, is my opinion only, which I am entitled to. Take it for what you estimate it is worth.

  15. #15
    Featured Member Vamp's Avatar
    Joined
    Jul 2004
    Location
    Missouri
    Posts
    1,111
    Thanks
    271
    Thanked 757 Times in 289 Posts

    Default Re: Roth IRA and Good Credit?

    Melonie that article was posted before the new laws took effect in October. I am just going by the information I was given at work.

    http://www.physiciansnews.com/law/605gunnett.html

    this is an article about the new laws. seems like they could be covered and not at the same time lol

Similar Threads

  1. Replies: 12
    Last Post: 10-03-2010, 04:01 AM
  2. Is it a good or bad time to start a Roth IRA?
    By lilymiaomiao in forum Dollar Den
    Replies: 31
    Last Post: 09-10-2009, 05:05 AM
  3. roth ira and simple ira
    By anomar in forum Dollar Den
    Replies: 6
    Last Post: 02-12-2008, 10:16 AM
  4. And yet another Roth IRA question...
    By greggy in forum Dollar Den
    Replies: 9
    Last Post: 11-10-2006, 03:31 PM
  5. Roth IRA
    By rain in forum Dollar Den
    Replies: 15
    Last Post: 10-31-2005, 01:59 AM

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •