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Author: twelvepercentt One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75335  
Subject: Traditional Roth, 401 or Roth IRA?? Date: 1/21/2005 11:49 AM
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My Spouse contributes the maximum allowable into his 401K account, which is matched by his employer.

I am a Per Diem worker, that works one or two days a week. Though I can open up a 401K Account through my workplace, it is not matched by my employee, since I am considered a "Casual" Worker.

I would rather have more options as to where my money goes, instead of the slim choices I have available to me with the 401K.

Is there any benefit to investing in the 401K through my workplace, or would I be better off investing in an IRA or a Roth IRA?

I would like the account to be joint, for my spouse.

Our combined income is over 100K, mostly my spouses income. :p

I value my fellow Fool's opinions and experience.

TIA
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Author: Fuskie Big funky green star, 20000 posts Top Favorite Fools Old School Fool Ticker Guide SC1 Red Winner of the 2010 Rule Breakers Challenge Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 44139 of 75335
Subject: Re: Traditional Roth, 401 or Roth IRA?? Date: 1/21/2005 12:16 PM
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Hit the Roth IRA firstm and then after you get the $4000 2005 contribution, return to the IRA and see what options you have. There is no such thing as a joint IRA (the I stands for Individual).

If you are married filing jointly, the tax deductibility of Traditional IRA contributions are phased out if the combined AGI is between $70-80k (note that this is not the net or gross income, but gross less deductions). For a Roth IRA, post-tax contributions can be made if the combined AGI is under $160k.

Fuskie
Who refers you to http://www.irs.gov/pub/irs-pdf/p590.pdf for the horse's mouth...

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Author: twelvepercentt One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 44140 of 75335
Subject: Re: Traditional Roth, 401 or Roth IRA?? Date: 1/21/2005 12:22 PM
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Thanks for the great link!

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Author: aktravler85 Two stars, 250 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 44151 of 75335
Subject: Re: Traditional Roth, 401 or Roth IRA?? Date: 1/24/2005 12:37 PM
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Read all about them in Pub 590, but note that they are INDIVIDUAL retirement accounts.

They are opened in one persons name only. You can not "have them in both your names".

Happy reading, and when you find confusing information, come on back.

Note I didn't say "if" you find confusing information. ;-)

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Author: yobria Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 44165 of 75335
Subject: Re: Traditional Roth, 401 or Roth IRA?? Date: 1/24/2005 11:28 PM
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would I be better off investing in an IRA or a Roth IRA?

How much do you have to invest? If it's more than $4K/year (the IRA max), you'll have to do the 401k. But that's not so bad- once you quit your job you can roll it into an IRA.

If you think your marginal tax bracket will be higher in retirement than it is now, do the Roth, otherwise the TIRA/401k. If you're not sure, I go for the Roth, since it's more flexible.

Nick



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