No. of Recommendations: 0
All Fools please read what Joe wrote. This is good stuff!!!
>>>In any event, even if you're in the cutoff band, it makes sense to make the maiximum Roth contribution you can. Now, it's up to you whether funding a non-deductable Tradtional IRA is the right option afterwards. I'd go to a taxable account first with LTB&H to get better tax treatment (ie. long term capital gains rate is lower than your tax bracket). And there's no limit to how much you can dump into a taxable account.>>>
Unfortunately, I do not qualify to contribute to a Roth, but I do fully (Fooly?) appreciate their value. In fact, IMHO Roth IRA's are such a good deal that I believe the government will probably change the rule. Yes, it is a bit pessimistic, but probably accurate, unfortunately. IMHO, anyone who is eligible to contribute to a Roth and doesn't is just plain foolish (note lower case).
Just to add my two cents for LordHedgehog's benefit: 1)contribute to the 401k until the employer stops matching (like you said , "I can't help but think its a good idea to take advantage of the 'free money.'" , 2)then max out a Roth each year, 3) then Long term buy and hold to take advantage of long term capital gains rates versus income tax rates. It really is that simple and Foolish.

Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
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.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! 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.