Hi.I was wondering what my limits are on investing in Roth and Simple-IRA's. If I put the max $2000 in a Roth-IRA, how much can I then stick in my Simple-IRA for that tax year?Also, am I going about this in the right way? Should I be stuffing my Roth-IRA before I start putting money in my Simple-IRA? If it matters, I'm 26 years old now.Thank you so much for the help!
Roth contributions are not taxable events. They have no effect on the amount you can put into your Simple IRA. I like the Roth for someone your age because the long term appreciation should provide you with a huge reservoir of TAX FREE assets. You can then manage your retirement income by offsetting some expenses, like your mortgage payment, which I think you should continue well into retirement in order to leverage you other assets, with taxable income from your Simple and other pre-tax savings.I like the fact that at 26 you are learning to live below your means. This points to a bright future for you.Build up some savings outside of these accounts. You will possibly need some cash to cover downpayment and closing costs on a home, you know, that tax shelter you sleep in.You're doing great. Keep it up!!
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