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Financial Planning / Foolish 401(k)s

URL:  https://boards.fool.com/in-addition-i-forgot-to-mention-that-you-may-18004898.aspx

Subject:  Re: 401(k) contributions Date:  10/16/2002  10:18 PM
Author:  MarleysGhost Number:  15416 of 26255

In addition, I forgot to mention that you may contribute to a traditional IRA even if you are a member of an employer's plan and your salary exceeds the phaseout ranges, but the contribution will be non-deductable, becoming part of the owner's basis in the IRA, and therefore non-taxable upon withdrawl.

Here's where it more advantageous to contribute to a ROTH, since it does not force the owner to draw down the balance upon the owner reaching the year in which he/she turns 70.5.


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