UnThreaded | Threaded | Whole Thread (19) | Ignore Thread Prev Thread | Prev | Next | Next Thread
Author: StockGoddess Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76079  
Subject: Re: Roth 401k vs. Traditional 401k Date: 9/28/2012 1:53 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0

2gifts is not eligible for a Roth IRA. That fact is a good indication of what tax bracket she is in


I am probably in that same "tax bracket" but there's a way around that. You put it into a standard IRA, then roll it into the ROTH. My Edward Jones person does it for me every year. I get no tax break for the standard IRA doing this, but I do get to ROTH invest. Here's a news article about it.

http://online.wsj.com/article/SB1000142405274870399490457564...

Also, if we were to have an awful stock year again and prices went way down, you could use that as an opportunity to move regular IRA into Roth IRA, pay taxes, and ride everything back up.

Ideas...

SG
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (19) | Ignore Thread Prev Thread | Prev | Next | Next Thread

Announcements

The Retire Early Home Page
Discussion on accelerating retirement day.
Pencils of Promise - Back to School Drive
"Pencils of Promise works with communities across the globe to build schools and create programs that provide education opportunities for children."
Post of the Day:
Berkshire Hathaway

IBM: Is Buffett Wrong, or Brilliant?
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement