No. of Recommendations: 0
First, does my logic make sense? Or am I overlooking something big?

Second, what are the requirements on 401k's and ROTH IRA's. I've already made my full 2007 contribution.

Yes, it makes sense. I assume your full 2007 contribution refers to the Roth IRA. You can contribute up to $15,500 to a 401K in 2007. If you turn 50 this year then you can add another $5,000. So crank up your contribution percentage to lower your income taxes keep some of your other largess in *your* bank account.

Probably the question bugging you is it worth dipping into some of the gains to cover for the lower take home pay because of the increased 401K contribution. You can spend the extra money you need this year and lower the 401K contribution for 2008.

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.