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Financial Planning / Foolish 401(k)s

URL:  http://boards.fool.com/if-you-have-maxed-your-roth-ira-contributions-for-30748247.aspx

Subject:  Re: Changing jobs - gap in eligibility Date:  6/24/2013  11:37 PM
Author:  pauleckler Number:  25072 of 25247

If you have maxed your Roth IRA contributions for the year, you cannot contribute additional cash to a traditional IRA. The limit is the sum of contributions to both.

You can rollover the funds in your previous 401K to an IRA, and it can be your existing rollover IRA. I don't understand your tax deferred comment. Rollover IRA transfers from 401ks do not count as contributions and are not included in your annual contribution limit.

Yes, if you have funds to save, investing in a taxable account in the long term buy and hold (LTBH) style is the best you can do. You pay taxes only when you sell and then at capital gains rates. And note that index funds are an excellent vehicle for this. They pay dividends, but those too are taxed at capital gains rates.
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