UnThreaded | Threaded | Whole Thread (2) | Ignore Thread Prev Thread | Prev | Next | Next Thread
Author: 2gynkv Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75859  
Subject: 401K max Roth IRA max $Next? Date: 12/21/1998 12:15 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
My 401-K is getting the max contribution my company will allow. I have deducted 17% before tax and a 5% after-tax contribution. The after-tax part of the account is segrigated, and it's principal is available for withdrawl with no penalty because the tax has been paid allready. Result: add $8,000/yr for total of $50,000 12/98.

I am making my 98 and 99 Roth IRA max contribution on 1/4/99. Total: $4,000.

I have $7,000 left over I want to put in a tax deffered vehicle. Options I can think of include:

*Tradional IRA. Can you contribute to a Roth and a Trad Ira for the same tax year? total 98 IRA contribution= $2,000 (Roth)+ $2,000(trad)=$4,000. still need to find a place for the other 5k of 7k.

*Variable annuity. I know there is no contribution limit, at least for me at <$40,000/year. Can I find one that lets me choose individual stocks for my account to purchase? Any draw-backs to this aproach?

*Stocks. Buy stocks I intend to hold at least until retirement in 12 years at, age 50, to avoid tax. This offers low flexibility and i think I would still have to pay tax on the dividends.

Which one is best, or a combination of these 3, or some option I don't know yet?

Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (2) | 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."
Managing Your Wealth
Our own TMFHockeypop from Rule Your Retirement fame on the TV show Managing Your Wealth.
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.
Post of the Day:
Value Hounds

Mobileye's Growth too Hot?
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
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