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Old 11-04-2012, 05:07 PM
 
4,215 posts, read 2,890,933 times
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My company has 401K Roth but no match. You can't do 401K, Roth IRA AND Roth 401K right?





Quote:
Originally Posted by StealthRabbit View Post
There are many unexpected events in life that REQUIRE you to scrape the bottom of the piggy bank (though you certainly don't want to touch 'qualified' $$ if avoidable). The ROTH is nice, in allowing you to take out initial contributions without penalty. (after 24 months)

ROTH is a PERFECT way to shelter assets from FAFSA (Student Loan Qualification). If you apply as a student with bucks in accessible accts... 100% is expected contribution. If in a ROTH... 0% is expected contribution (tho 100% of ROTH is accessible for EDU (up to limits)).

Then there is the 401k 'Catchup' (additional $5500 above the 'kid's' (buckaroo's) $17k cap)

I have found it nice when taking an early severence / Golden Parachute payout. but BEWARE Beware Playing 401(k) Catch-Up Close to Retirement - US News and World Report

I am hoping to do Multiple 'Golden Parachutes'. I have coworkers that got as many as 4... (get paid to leave, then paid extra to come back, then paid to leave again... Good Gig !) Unfortunately, the Company has wised up and they now reduce subsequent payouts But still you get the miminum (Or more) usually 6 mo to 1 yr salary. Currently I'm trying the 'reverse' sabatical, Off seven, then work one, then off seven
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Old 11-04-2012, 05:09 PM
 
4,215 posts, read 2,890,933 times
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Quote:
Originally Posted by rjm1cc View Post
If you can afford to then you should.
If you can not afford to then use the 401k up to the company match, then the ROTH and then back to the 401k for anything that is left.

Remember you will probably (might have to have the ROTH open for 5 years)be able to take your ROTH contribution (no earnings) out without penalties if you run into problems down the road.
After $17K for 401K and $5K or Roth IRA. There isn't any option but to go with a after-tax account.
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Old 11-05-2012, 08:53 AM
 
Location: We_tside PNW / CO / SA TX / Thailand
10,469 posts, read 16,566,943 times
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Quote:
Originally Posted by Info Guy View Post
My company has 401K Roth but no match. You can't do 401K, Roth IRA AND Roth 401K right?
I have done all three, but only with multiple employers (I hate working one job, I need variety). For 401k, maximize employer matching (I have had some who match ROTH 401k). But I personally ALSO recommending maxing your ROTH IRA's (early in the yr, more time for tax exempt earnings).

ROTH IRA phases out at higher income level, so then I use a Traditional, and convert it to ROTH in a low earnings year.

Sometimes either or both spouse is better off with a traditional IRA. Just run the numbers and do the right thing annually. (And it will REALLY be nice if congress gets there PLAN together and we all don't fall off the Fiscal cliff.. BE GLAD you are not self employed... they are getting HAMMERED (since they pay both sides of SS and Medicare.) BUT there will be A LOT more unemployed / self employed from companies with over 49 employees. Stats show that Canada companies over 50 employees dropped 2.5x when they instituted similar rules. Getting ugly. be smart.
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Old 11-05-2012, 12:29 PM
 
4,215 posts, read 2,890,933 times
Reputation: 1516
Quote:
Originally Posted by StealthRabbit View Post
I have done all three, but only with multiple employers (I hate working one job, I need variety). For 401k, maximize employer matching (I have had some who match ROTH 401k). But I personally ALSO recommending maxing your ROTH IRA's (early in the yr, more time for tax exempt earnings).

ROTH IRA phases out at higher income level, so then I use a Traditional, and convert it to ROTH in a low earnings year.

Sometimes either or both spouse is better off with a traditional IRA. Just run the numbers and do the right thing annually. (And it will REALLY be nice if congress gets there PLAN together and we all don't fall off the Fiscal cliff.. BE GLAD you are not self employed... they are getting HAMMERED (since they pay both sides of SS and Medicare.) BUT there will be A LOT more unemployed / self employed from companies with over 49 employees. Stats show that Canada companies over 50 employees dropped 2.5x when they instituted similar rules. Getting ugly. be smart.
My employer matches 4.5%, $1 to $1 but I will make I get to $17K from my pocket equally till the end of the year so I still get the full matching. I can go over $17K if the exceeded amount is my employer's matching right?

Why would you put in $5K early in the year for Roth IRA? I buy it when the market has had a big sell off for a week or so. That way I can buy the shares for cheaper price. I am also self-employer as well as working with an employer.
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Old 11-05-2012, 04:11 PM
 
Location: We_tside PNW / CO / SA TX / Thailand
10,469 posts, read 16,566,943 times
Reputation: 7338
Quote:
Originally Posted by Info Guy View Post
.... I can go over $17K if the exceeded amount is my employer's matching right?
I THINK the $17k is TOTAL cap including employer contributionWhy would you put in $5K early in the year for Roth IRA? I buy it when the market has had a big sell off for a week or so. That way I can buy the shares for cheaper price. I am also self-employer as well as working with an employer.
I FUND my ROTH early in the yr if possible. How I INVEST within my ROTH is quite dependant upon market conditions. I really wish there was a simple way to manage composite QUALIFIED moneys... it gets to be a REAL hassle if both spouses have MANY multiple Accounts (which happens easily). I roll into self directed IRA's, but still means a MINIMUM of 6 accts to watch frequently. Thats just the QUALIFIED monies... then you get to unqualified (at least 6 other accts, and things get messy.
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