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Author: bostwick1 Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75339  
Subject: 401(k) and Non-deductibel IRA Date: 1/31/1999 5:06 AM
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Once you have contributed the maximum amount to your 401(k), what are the benefits and disadvantages of contributing to an IRA, especially if any contributions would be non-deductible due to your income level?
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Author: gp703 One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 8191 of 75339
Subject: Re: 401(k) and Non-deductibel IRA Date: 1/31/1999 10:27 AM
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This has been covered many times and is totally dependent on each individuals circumstances. Check back previous threads and try the FAQ areas for retirement investing and taxes.

GP

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Author: TMFPixy Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 8203 of 75339
Subject: Re: 401(k) and Non-deductibel IRA Date: 1/31/1999 11:10 AM
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Greetings, Bostwick1, and welcome. You asked:

<<Once you have contributed the maximum amount to your 401(k), what are the benefits and disadvantages of contributing to an IRA, especially if any contributions would be non-deductible due to your income level?>>

The biggest advantage is all earnings will compound tax deferred, which adds a leveraging factor to your growth. If you are within the Adjusted Gross Income limits for a Roth IRA, eventually everything comes out tax-free. The biggest disadvantage is you will normally have to wait until age 59 1/2 to be able to make penalty-free withdrawals.

Regards….Pixy


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