quotequeen
Well-Known Member
Joined: Dec 18, 2010 15:51:15 GMT -5
Posts: 1,448
|
Post by quotequeen on Jan 5, 2011 11:28:42 GMT -5
You can fund a Roth for 2010 until April if your 2010 income is below the limit. If it's not, you can fund a traditional IRA and then immediately convert it to a Roth.
Regarding brokerage accounts, you don't need to pay a broker. You can get an account at a discount brokerage firm like Vanguard and just purchase mutual funds, the same as you would do in your 401k or Roth IRA. If you don't want to have to think about it, pick a target retirement fund that automatically rebalances for you and don't worry about it.
|
|
Deleted
Joined: May 2, 2024 6:14:26 GMT -5
Posts: 0
|
Post by Deleted on Jan 5, 2011 11:32:26 GMT -5
I put a little over $1000 in a roth 401K through payroll deduction. Does that amount count towards the $5000 limit for 2010?
|
|
quotequeen
Well-Known Member
Joined: Dec 18, 2010 15:51:15 GMT -5
Posts: 1,448
|
Post by quotequeen on Jan 5, 2011 11:36:04 GMT -5
No, the limits on 401ks and IRAs are completely separate.
|
|
Deleted
Joined: May 2, 2024 6:14:26 GMT -5
Posts: 0
|
Post by Deleted on Jan 5, 2011 11:39:40 GMT -5
So what exactly is a Roth 401k? I just wanted some extra money going from my paycheck to a savings vehicle but had no idea that the post-tax Roth 401K contributions counted towards my $16,500 limit.
|
|
quotequeen
Well-Known Member
Joined: Dec 18, 2010 15:51:15 GMT -5
Posts: 1,448
|
Post by quotequeen on Jan 5, 2011 11:59:02 GMT -5
So what exactly is a Roth 401k? I just wanted some extra money going from my paycheck to a savings vehicle but had no idea that the post-tax Roth 401K contributions counted towards my $16,500 limit. A Roth 401k is just a 401k where you don't get a tax deduction now but the money grows tax free and there are no taxes when you pull it out at retirement. It's just like a Roth IRA, except that it's run by your employer. The $16,500 limit applies to the combination of your traditional and Roth 401ks, and the $5000 limit applies to the combination of your traditional and Roth IRAs. Some plans will let you contribute more on an after-tax basis (no tax break now OR in the future), but that would have to be in your traditional 401k, not the Roth, and it depends on your plan rules. |
|
Deleted
Joined: May 2, 2024 6:14:26 GMT -5
Posts: 0
|
Post by Deleted on Jan 5, 2011 12:00:17 GMT -5
thanks!!
|
|
Peace77
Senior Member
Joined: Dec 29, 2010 1:42:40 GMT -5
Posts: 3,926
|
Post by Peace77 on Jan 19, 2011 20:45:50 GMT -5
American Express is currently paying 1.3% for their high yield savings account personalsavings.americanexpress.com/Even though your daughter has started school, she can still apply for scholarships and grants for her education. I would encourage her to apply for as many as she can. Would also encourage her to work and pay her way through as much as possible. |
|
