UnThreaded | Threaded | Whole Thread (6) | Ignore Thread Prev Thread | Prev | Next | Next Thread
Author: 2gifts Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75801  
Subject: Re: Roth Question Date: 1/24/2011 1:51 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 6
One thing you might want to think about, will you make enough to be in-eligible next year and years there after. If you're only able to make one or two years contributions, it might not be worth the hassle.

Although that might be true, you can't know until after the fact if you are not able to contribute except for a few years.

I fall into this bucket. In order for DH and I to qualify for a Roth IRA, I have to be unemployed. That's happened 3 times so far with last year being the most recent. I have taken advantage of this each time and have maxed our our Roth IRA contributions. That's 3 times more than I thought we would qualify for, but as I have no way to know ahead of time how many years I may be able to contribute, I'd rather take the chance that there will be more years and do the contribution to the Roth.

Given the OP's current status, I would bet that she will be able to contribute for a few years, so I would definitely be contributing this year and every year where I were eligible.

Something I do to help with this is that I do not make my Roth contribution until after I have done my taxes so that I know that we are, in fact, eligible to make the contribution. That's easier than making it earlier in the year because I assume that will be eligible, and then finding out that this is not true and having to recharacterize contributions or pull them out.
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (6) | Ignore Thread Prev Thread | Prev | Next | Next Thread

Announcements

The Retire Early Home Page
Discussion on accelerating retirement day.
Pencils of Promise - Back to School Drive
"Pencils of Promise works with communities across the globe to build schools and create programs that provide education opportunities for children."
Managing Your Wealth
Our own TMFHockeypop from Rule Your Retirement fame on the TV show Managing Your Wealth.
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.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! 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.
Advertisement