Comments on: Three Ways to Make Your IRA Work Harder http://www.fivecentnickel.com/2007/05/02/three-ways-to-make-your-ira-work-harder/ personal finance tips, tricks, and commentary Sat, 21 Nov 2009 22:51:28 -0500 http://wordpress.org/?v=abc hourly 1 By: JOATMON http://www.fivecentnickel.com/2007/05/02/three-ways-to-make-your-ira-work-harder/comment-page-1/#comment-77250 JOATMON Fri, 04 May 2007 02:34:18 +0000 http://www.fivecentnickel.com/2007/05/02/three-ways-to-make-your-ira-work-harder/#comment-77250 Over the Roth limit - you can choose to leave the money in the account and allocate those dollars for future year contributions - ok if you have an unplanned income increase or your income limit will change due to change in filing status or spouse exiting the workforce. If those aren't likely, then you'll need to measure your income and contirbutions carefully. Over the Roth limit – you can choose to leave the money in the account and allocate those dollars for future year contributions – ok if you have an unplanned income increase or your income limit will change due to change in filing status or spouse exiting the workforce. If those aren’t likely, then you’ll need to measure your income and contirbutions carefully.

]]> By: Creditnine.com http://www.fivecentnickel.com/2007/05/02/three-ways-to-make-your-ira-work-harder/comment-page-1/#comment-77151 Creditnine.com Thu, 03 May 2007 17:35:00 +0000 http://www.fivecentnickel.com/2007/05/02/three-ways-to-make-your-ira-work-harder/#comment-77151 Valuable points if people have money to contribute... many dont, they live above their means. Valuable points if people have money to contribute… many dont, they live above their means.

]]> By: Kim http://www.fivecentnickel.com/2007/05/02/three-ways-to-make-your-ira-work-harder/comment-page-1/#comment-77042 Kim Thu, 03 May 2007 02:35:41 +0000 http://www.fivecentnickel.com/2007/05/02/three-ways-to-make-your-ira-work-harder/#comment-77042 I was just going to write, and see Nicole posted the question I was going to effectively answer. I think this advice makes great sense if you'll definitely be under the income threshold. But if not, you're better of waiting. If you exceed the income threshold you need to go through the hassle of taking the proper amount of money back out and there can be a ton of negative tax implications. Better to wait in this case. I was just going to write, and see Nicole posted the question I was going to effectively answer. I think this advice makes great sense if you’ll definitely be under the income threshold. But if not, you’re better of waiting. If you exceed the income threshold you need to go through the hassle of taking the proper amount of money back out and there can be a ton of negative tax implications. Better to wait in this case.

]]> By: junger http://www.fivecentnickel.com/2007/05/02/three-ways-to-make-your-ira-work-harder/comment-page-1/#comment-77035 junger Thu, 03 May 2007 02:07:48 +0000 http://www.fivecentnickel.com/2007/05/02/three-ways-to-make-your-ira-work-harder/#comment-77035 I always hear the idea of maxing out the 401k first, and then the IRA, but dropping $15k just doesn't seem feasible. $4k into the IRA does, though. I always hear the idea of maxing out the 401k first, and then the IRA, but dropping $15k just doesn’t seem feasible. $4k into the IRA does, though.

]]> By: FMF http://www.fivecentnickel.com/2007/05/02/three-ways-to-make-your-ira-work-harder/comment-page-1/#comment-76962 FMF Wed, 02 May 2007 17:03:48 +0000 http://www.fivecentnickel.com/2007/05/02/three-ways-to-make-your-ira-work-harder/#comment-76962 Yes, good advice. But also remember the order of saving: 401ks to get full match, then Roth IRA, then rest of 401k to max out. Yes, good advice. But also remember the order of saving: 401ks to get full match, then Roth IRA, then rest of 401k to max out.

]]> By: Blain Reinkensmeyer http://www.fivecentnickel.com/2007/05/02/three-ways-to-make-your-ira-work-harder/comment-page-1/#comment-76944 Blain Reinkensmeyer Wed, 02 May 2007 15:30:49 +0000 http://www.fivecentnickel.com/2007/05/02/three-ways-to-make-your-ira-work-harder/#comment-76944 I would add to this list to simply take advantage of your employer plans! A lot of company's have pretty decent contribution plans for 401ks and the like. I was talking to my roommate yesterday about this, who works for Phillip Morris. They will contribute 15% of his total income each year after 2 years of working there. If he maximizes his contributions as well, you have a fantastic situation. I'd be willing to bet most people simply neglect taking the time to understand the plans their bosses have in place. I would add to this list to simply take advantage of your employer plans! A lot of company’s have pretty decent contribution plans for 401ks and the like.

I was talking to my roommate yesterday about this, who works for Phillip Morris. They will contribute 15% of his total income each year after 2 years of working there. If he maximizes his contributions as well, you have a fantastic situation.

I’d be willing to bet most people simply neglect taking the time to understand the plans their bosses have in place.

]]> By: Blaine Moore http://www.fivecentnickel.com/2007/05/02/three-ways-to-make-your-ira-work-harder/comment-page-1/#comment-76939 Blaine Moore Wed, 02 May 2007 15:18:39 +0000 http://www.fivecentnickel.com/2007/05/02/three-ways-to-make-your-ira-work-harder/#comment-76939 I am currently contributing an amount every couple of weeks that will get me to half of the limit, with an equal amount going to the emergency fund. I figure later in the year I will see if the index I invest in takes a dive again and then put a fair amount in at that point to buy at a discount; if not I will just make a slightly larger contribution towards the end of the year to get me at or near the max. I contributed the max last year. I am currently contributing an amount every couple of weeks that will get me to half of the limit, with an equal amount going to the emergency fund. I figure later in the year I will see if the index I invest in takes a dive again and then put a fair amount in at that point to buy at a discount; if not I will just make a slightly larger contribution towards the end of the year to get me at or near the max. I contributed the max last year.

]]> By: Nicole http://www.fivecentnickel.com/2007/05/02/three-ways-to-make-your-ira-work-harder/comment-page-1/#comment-76932 Nicole Wed, 02 May 2007 15:04:34 +0000 http://www.fivecentnickel.com/2007/05/02/three-ways-to-make-your-ira-work-harder/#comment-76932 I'd love to make Roth contributions, but our income borders on the limit and may go over this year--what if you contribute and then your income goes over the limit? Does anyone know what happens? I’d love to make Roth contributions, but our income borders on the limit and may go over this year–what if you contribute and then your income goes over the limit? Does anyone know what happens?

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