If you have a ROTH but make too much money that year..

[Lowexpectations]

Originally Posted by IDtheftV

I wish that people ( not you ) would say Roth IRA/Traditional IRA/Roth 401(k)/Traditional 401k(k) because when bouncing around the terms, it matters. RIRA TIRA R401k T401k would eliminate the ambiguity.
If they already have money in an IRA ( any kind ) they can contribute up to their limit in any year. I'm sure you know this, but as I read it, you are saying if they have an old TIRA then there is a limit to their TIRA or RIRA contribution, but there is none based on any old accounts. Since 99% of the people reading are not contributing, I want to make that clear.

From irs.gov The same general contribution limit applies to both Roth and traditional IRAs as does the income limit.

Traditional retirement accounts are a current year deduction from income.

Roth's are not deductible.

The contribution limits are the same. For instance, a 40-year-old can contribute $5,000 to an IRA if their employer doesn't offer a 401k. However, that could be $3,000 to a TIRA and $2,000 to a RIRA or any combination to make it to $5,000 ( or any lower total ).I think this is a personal decision. As long as the retirement-saver understands the difference today and at retirement, it doesn't matter.

I personally like the instant gratification of the current-year tax deduction, but that's ENTIRELY personal.

As for rolling over old IRAs and 401(k)s into current employer 401(k)s
( R or T -- must be the same type ),
that's a topic for a separate thread and doesn't belong here in this one.

If you are stating Ira or 401k those are industry standard for pretax and thus if you mean Roth or Roth 401k you are using the wrong terminology. The terms that should be used are

Ira
Roth IRA
401k
Roth 401k

You can add a T if you want but it's overly redundant and you should simply be using the above correctly

/psa

[IDtheftV]

Originally Posted by Lowexpectations

The terms that should be used are

Ira
Roth IRA
401k
Roth 401k

I vote for what you said, as long as we enforce this. I've got a feeling I'll be quoting your post a lot.

Thanks for showing us ( me ) the Standard. I'll keep my 'T's' to myself.

[mizzourah2006]

Originally Posted by IDtheftV

I wish that people ( not you ) would say Roth IRA/Traditional IRA/Roth 401(k)/Traditional 401k(k) because when bouncing around the terms, it matters. RIRA TIRA R401k T401k would eliminate the ambiguity.
If they already have money in an IRA ( any kind ) they can contribute up to their limit in any year. I'm sure you know this, but as I read it, you are saying if they have an old TIRA then there is a limit to their TIRA or RIRA contribution, but there is none based on any old accounts. Since 99% of the people reading are not contributing, I want to make that clear.

From irs.gov The same general contribution limit applies to both Roth and traditional IRAs as does the income limit.

Traditional retirement accounts are a current year deduction from income.

Roth's are not deductible.

The contribution limits are the same. For instance, a 40-year-old can contribute $5,000 to an IRA if their employer doesn't offer a 401k. However, that could be $3,000 to a TIRA and $2,000 to a RIRA or any combination to make it to $5,000 ( or any lower total ).

The same mix applies to Roth accounts of both types. Income limits and catch-ups are all the same.I think this is a personal decision. As long as the retirement-saver understands the difference today and at retirement, it doesn't matter.

I personally like the instant gratification of the current-year tax deduction, but that's ENTIRELY personal.

As for rolling over old IRAs and 401(k)s into current employer 401(k)s
( R or T -- must be the same type ),
that's a topic for a separate thread and doesn't belong here in this one.

Yes, I was referencing the backdoor Roth. lowexpectations mentioned what I was referring to on page 2.

Originally Posted by Lowexpectations

401k isn't a problem it's any Ira with pretax monies and then the conversion becomes prorata even if you have multiple accounts

Ira #1 55,000 pretax
Ira #2 5500 non deductible

Convert 5500 to Roth 91% of the conversion would be taxable