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Started By
Message
Anyone here invest in both a ROTH IRA and Traditional IRA?
Posted on 7/6/13 at 10:27 pm
Posted on 7/6/13 at 10:27 pm
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?
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 7/6/13 at 10:28 pm
6
Posted on 7/6/13 at 11:41 pm to wegotdatwood
You are limited by the annual IRA contribution limit. You cannot max both of those out, but you can certainly do a combo contribution.
Posted on 7/6/13 at 11:45 pm to wegotdatwood
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.
Posted on 7/6/13 at 11:49 pm to RebelOP
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%.
The problem will be when we move to the 25% and need that 11k deduction to lower our income to the 15%.
Posted on 7/7/13 at 12:28 am to DrEdgeLSU
I guess my wife could do a traditional, right? Or smarter for us both to do a roth?
Posted on 7/7/13 at 12:29 am to RebelOP
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.
Posted on 7/7/13 at 12:33 am to LSUtoOmaha
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.
Posted on 7/7/13 at 2:16 am to wegotdatwood
After reading, I think I'll max out my HSA now.
Posted on 7/7/13 at 9:38 am to wegotdatwood
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?
Posted on 7/7/13 at 9:59 am to HailToTheChiz
No, then you couldn't save more. I don't think you can do a joint Individual Retirement Account
Posted on 7/7/13 at 12:15 pm to wegotdatwood
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.
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 7/7/13 at 12:24 pm
Posted on 7/7/13 at 12:18 pm to wegotdatwood
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.
Posted on 7/7/13 at 12:18 pm to Lsut81
Yes yes and yes
Posted on 7/7/13 at 12:37 pm to jimbeam
Does it cost anything to transfer a traditional to a Roth?
Posted on 7/7/13 at 12:40 pm to wegotdatwood
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.
Posted on 7/7/13 at 12:55 pm to Lsut81
Most likely
The govt wants its money
The govt wants its money
Posted on 7/7/13 at 1:48 pm to jimbeam
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.
That would put us saving about 20k out of our gross 85k.
Lowering our taxable income to 55k with her fsa at 5k.
Posted on 7/7/13 at 2:14 pm to wegotdatwood
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.
I feel as if I put a healthy amount into retirement and have enough left over to enjoy my 20s.
Posted on 7/7/13 at 4:17 pm to RebelOP
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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