I just opened a Vanguard Roth IRA and I have a handful of questions:
1. I was pleasantly surprised to find that I can still contribute for 2013 (deadline is in two weeks). I'm currently planning to max the 2013 contribution right away but, because the market's peaking, wait on making contributions for 2014. Is that sensible?
2. My wife also just opened an identical account and we're planning to do the same for her account. Am I correct in understanding that it's legitimate to max out one Roth IRA for each spouse, when we file jointly?
3. Do these contributions need to be reported on our 2013 tax return? My research has indicated no, but I'd like confirmation.
4. Once we've bought assets with the money in these accounts, will we have any flexibility in changing asset allocations, buying different index funds, etc.? This question may not make a lot of sense, because I'm still pretty clueless, so I'd be interested in any thoughts even tangentially related.
5. I understand that the gains in a Roth IRA are tax-free, so it's best to hold assets there which would normally be bad for taxes. In light of that, can anybody comment on what sorts of assets are optimal to put in a Roth IRA? Is there any rule of thumb for making those assessments? I think I will stick to Vanguard ETFs (let me know if that's unreasonable), if that helps narrow it down.
Thanks in advance! I've already learned quite a bit from this great community.