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Investing/Strategies / Retirement Investing
|Subject: Re: Roth vs. Traditional IRA||Date: 8/31/2003 11:17 PM|
|Author: dsemmler||Number: 37071 of 76594|
4)Equal amounts in a Traditional IRA(or the 401k if you have good investment choices) and a Roth IRA.
You might want to contribute something like $1.30 to the traditional IRA or 401K for every dollar contributed to the Roth IRA to make them equal after the traditional IRA tax deduction.
You did not indicate this point and I just want to clarify for others but you can only contribute a maximum of $3000 (or $3500 depending on your age) to all IRA accounts.
I am not quite sure why you advocate making contributions to a Traditional IRA and a Roth IRA. In your example, you would have $1500 in a TIRA and $1500 in a Roth IRA. Can you explain the benefit to that versus putting the max in just the Roth (if you qualify)?
Just to recap, you are limited to a total contribution of $3000 (or $3500 depending on age) to ALL IRA accounts. You cannot contribute the max to a Traditional IRA and the max to a Roth IRA.
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