|
The Motley Fool Discussion Boards
|
Previous Page | |
|
Investing/Strategies / Retirement Investing |
||
|
URL:
https://boards.fool.com/ira-limits-12789538.aspx
|
||
| Subject: IRA limits | Date: 6/23/2000 4:48 PM | |
| Author: Carpian | Number: 22816 of 101521 | |
|
This has probably been covered on this board before, but with 22,000+ posts...well, you get the idea. I apologize for any redundancy. It hasn't been covered in the last week at any rate. I've just heard something that sounds incredulous to me, and I want to verify that it's correct. It seems that a person of moderate income who has a retirement plan at work (i.e. 401k) can contribute up to roughly $10,000 per year to their work retirement plan and still also contribute $2,000 to a Roth IRA. On the other hand, someone who does not have a retirement plan at work (read: someone who really needs their IRAs), if they fully fund a $2000 traditional IRA, they cannot contribute anything to a Roth, and vice-versa. They are limited to $2000 total in their IRA contributions. Is it just me, or does this not make any sense? For example, I have a friend who was a nun all her adult life and recently left the convent at age 42. She has no savings (talk about someone who needs to start building retirement savings!). She is a teacher, and her school has a 1-year waiting period for 403b participation. So this first year, this person can only contribute $2000 total among her retirement accounts? While those who are in better financial positions can contribute much more? What's up with that? John |
||
| Copyright 1996-2021 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us | ||