So I have a Roth IRA and a government retirement where I work?

Question

The government retirement I can add $15,000 a year with out paying penalities and the Roth says I can add $4,000 a year with out paying penalities, so does that mean I can put away $19,000 a year with out having to pay penalties to the government.

Answer 1

Yes. They are separate plans, so you can make those separate contributions with no penalties. I have the same, a Roth 401K and a government retirement plan. But if I contributed 15,000 to the retirement, I wouldn't have very much to live on!!

Answer 2

particular! in case you're attempting to retire early and get a steady bypass of earnings...there's a fashion. uncertain how previous you're yet permit in simple terms assume you're 35(in elementary terms a random extensive type, ok?) ...save saving right into a fastened annuity or a flexible annuity, in case you're able to try this with after tax money, it gets much greater advantageous. in case you positioned it up as a Non-qualified Annuity, which ability its after tax money, and in simple terms permit it enhance no count if its 10 or 20yrs from now once you're fifty 5. there is two procedures you will get earnings from this, the two withdraw in simple terms the activity each and each month (in simple terms like a paycheck from an company), the coverage company and deposit it into your account. And document your taxes with that as known earnings. occasion, in case you have have been given approximately 75k stored, and worst case situation, an coverage company provides you with 3% activity month-to-month, thats a month-to-month funds bypass of 2250. of path, you ought to document taxes on it as known earnings. or you could set up 2 annuity debts and annuitize one at age fifty 5 or formerly, your selection and save the different one for later. Annuitizing is definitely finding out to purchase a freelance from the coverage company that they pays you a definite quantity for something of your existence or a definite quantity for a definite quantity of time. The latter many times gets the better quantity of payout. in any case, the record is going on and on for strategies to retire early and not get penalized. the nice and comfortable button is to fund a mark downs approach with after tax money...this type, the government can care much less what you do with it....properly, as long as you pay taxes on your features that's :)