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Subject:  Re: Convince me to put money into a ROTH Date:  3/28/2006  7:36 PM
Author:  Dullchisel Number:  50768 of 88822

I just noticed that if you make over a certain amount of money that you are ineligible for ROTH accounts. I do not currently, but plan on making more money that allowed for a ROTH account. Would it be foolish to invest now if I will not be allowed to contribute within a couple of years?

I think it is worth it. You can contribute up to $4K for 2005 up until April 17. Then $5k a year until you are ineligible. So, if you can contribute for a couple more years, that would be $14k. If it then just sits there and grows for 30 or 40 years, it would be better than a jab in the eye with a sharp stick by far.

Personally, I wish I had realized I could have Roths before now. I am retiring Friday, but my wife will work for at least 3 more years. As it works out, we can both contribute based on her wages and I intend to do so for 05, 06, 07, 08 and 09. That'll put in about $50k between us. I will then let it grow and not touch it unless needed. It'll be a pretty good chunk of change in 20 years. Tax free. Kind of a safety net.

It works for me. To each his own.

You'll probably get some more responses from the Fools around here with more experience. See what they come up with.


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