Anyone here invest in both a ROTH IRA and Traditional IRA? | TigerDroppings.com

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wegotdatwood
Arkansas Fan
Member since Aug 2009
17094 posts

Anyone here invest in both a ROTH IRA and Traditional IRA?


I know some have too high of an income to put into a ROTH.


Do you try and max out both? It would be nice to get to lower my taxable income a little since all I have is a ROTH that doesn't give me that ability.



Also, through my work, I'll be putting into a 403b.

Will that impact my ability to put $ in a traditional?




This post was edited on 7/6 at 10:28 pm



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DrEdgeLSU
LSU Fan
Dallas, TX
Member since Dec 2006
5949 posts

re: Anyone here invest in both a ROTH IRA and Traditional IRA?


You are limited by the annual IRA contribution limit. You cannot max both of those out, but you can certainly do a combo contribution.





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wegotdatwood
Arkansas Fan
Member since Aug 2009
17094 posts

re: Anyone here invest in both a ROTH IRA and Traditional IRA?


Damn





I feel like a moron.






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RebelOP
Ole Miss Fan
Misty Mountain Top
Member since Jun 2013
8171 posts

re: Anyone here invest in both a ROTH IRA and Traditional IRA?


quote:

It would be nice to get to lower my taxable income a little since all I have is a ROTH that doesn't give me that ability


ROTH will thank you later since we have no damn clue what the govt is going to do down the road with taxes.






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wegotdatwood
Arkansas Fan
Member since Aug 2009
17094 posts

re: Anyone here invest in both a ROTH IRA and Traditional IRA?


I know, it's not a big deal now since I'll easily get in the standard deduction that will put me in the 15%.

The problem will be when we move to the 25% and need that 11k deduction to lower our income to the 15%.






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wegotdatwood
Arkansas Fan
Member since Aug 2009
17094 posts

re: Anyone here invest in both a ROTH IRA and Traditional IRA?


I guess my wife could do a traditional, right? Or smarter for us both to do a roth?





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LSUtoOmaha
LSU Fan
Nashville
Member since Apr 2004
21042 posts

re: Anyone here invest in both a ROTH IRA and Traditional IRA?


quote:

ROTH will thank you later since we have no damn clue what the govt is going to do down the road with taxes.


Meh, I don't really like this argument. On the flip side, you can argue: What is to prevent the government from implementing a progressive policy where all investment accounts are subject to an income tax. At least with a traditional account you get a tax break now.


That's why it is best to have tax diversification just like anything else. Who knows about any of it? Nobody.






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wegotdatwood
Arkansas Fan
Member since Aug 2009
17094 posts

re: Anyone here invest in both a ROTH IRA and Traditional IRA?


quote:

That's why it is best to have tax diversification just like anything else. Who knows about any of it? Nobody.





Guess I'll have my wife just do traditional so at least we get a little tax break now.

quote:

What is to prevent the government from implementing a progressive policy where all investment accounts are subject to an income tax.


God, that would cause me to choke a bitch.






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wegotdatwood
Arkansas Fan
Member since Aug 2009
17094 posts

re: Anyone here invest in both a ROTH IRA and Traditional IRA?


After reading, I think I'll max out my HSA now.





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HailToTheChiz
Auburn Fan
Behold, SKYWHALE!
Member since Aug 2010
7249 posts

re: Anyone here invest in both a ROTH IRA and Traditional IRA?


quote:

guess my wife could do a traditional, right? Or smarter for us both to do a roth?


is it better to go jointly on one IRA?






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wegotdatwood
Arkansas Fan
Member since Aug 2009
17094 posts

re: Anyone here invest in both a ROTH IRA and Traditional IRA?


No, then you couldn't save more. I don't think you can do a joint Individual Retirement Account





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dewster
Maryland Fan
Tennessee
Member since Aug 2006
8982 posts

re: Anyone here invest in both a ROTH IRA and Traditional IRA?


Yes. Roth is limited regardless up to a certain income level. Gains are tax free and your contributions are already taxed.

I do both....to get the extra bang for my buck early on by eliminating tax liability now and hopefully have a nice chunk of change that I can take out tax free in case I earn more than the limits later in my career.



This post was edited on 7/7 at 12:24 pm


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Lsut81
USA Fan
Member since Jun 2005
63067 posts

re: Anyone here invest in both a ROTH IRA and Traditional IRA?


quote:

Anyone here invest in both a ROTH IRA and Traditional IRA?


There is a limit you can put on them... I think its $5500 for 2013

I'd go Roth as your gains are tax free and you can pull your principal out at any time without penalty.






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jimbeam
USA Fan
University of LSU
Member since Oct 2011
29999 posts

re: Anyone here invest in both a ROTH IRA and Traditional IRA?


Yes yes and yes





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wegotdatwood
Arkansas Fan
Member since Aug 2009
17094 posts

re: Anyone here invest in both a ROTH IRA and Traditional IRA?


Does it cost anything to transfer a traditional to a Roth?





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Lsut81
USA Fan
Member since Jun 2005
63067 posts

re: Anyone here invest in both a ROTH IRA and Traditional IRA?


quote:

Does it cost anything to transfer a traditional to a Roth?


I'm no expert, so I don't know if its possible to, but I know that you would have to pay taxes on the funds, since they were before taxes and Roth is after taxes.







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jimbeam
USA Fan
University of LSU
Member since Oct 2011
29999 posts

re: Anyone here invest in both a ROTH IRA and Traditional IRA?


Most likely


The govt wants its money






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wegotdatwood
Arkansas Fan
Member since Aug 2009
17094 posts

re: Anyone here invest in both a ROTH IRA and Traditional IRA?


My plan, it may be a challenge is to max out my Roth, wife's traditional, max hsa, and contribute 6% of my salary and wife putting in 10% in her 401k.

That would put us saving about 20k out of our gross 85k.

Lowering our taxable income to 55k with her fsa at 5k.






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RickAstley
LSU Fan
Reno, Nevada
Member since May 2011
1600 posts

re: Anyone here invest in both a ROTH IRA and Traditional IRA?


I will say from my perspective, if you increase your contributions in your 401(k) along with pay raises, you may never notice the change. I contributed 6% last year and upped it to 10% this year along with a pay raise, and so far I am not missing the money. I do max out a Roth IRA and that is all of the retirement funding I do in my budget.

I feel as if I put a healthy amount into retirement and have enough left over to enjoy my 20s.






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11thACR
Appalachian St. Fan
Georgia
Member since Mar 2012
487 posts

re: Anyone here invest in both a ROTH IRA and Traditional IRA?


NO Clue what the Gov will Do or Be in the Future should push you to traditional 401k/IRA. Save tax dollars now the amount and PV of those $$$ and PV factor between now and retirement can be Known factors.





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