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Author: aj485 Big gold star, 5000 posts Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 25247  
Subject: Re: New job/No 401K Date: 1/22/2012 1:54 AM
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Is there a limit I can contribute to my Roth? I thought it was 6K

Yes, there is a limit. The limit is $5k annually if you are under 50, and $6k annually if you will be 50 or older by the end of the year that you are contributing for.

My question is if I'm limited to the Roth at 6K what other avenues would this board suggest.

Taxable accounts. Just because it doesn't say '401(k)' or 'IRA' doesn't mean that it can't be used for retirement.

You may want to allocate investments that will have income taxed at ordinary income rates (non-qualified dividends, interest, short-term gains, etc.) in your tax advantaged accounts, and investments that will be taxed at lower rates (long-term gains, muni bonds, qualified dividends, etc.) in your taxable accounts.

Ensure that you are looking at your investment allocations across all types accounts that you own - don't think that if you want a 70/30 stock/bond allocation that each type of account has to have that allocation - you just need to look at the totals.

AJ
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