On $60K p/y, I fully fund my 403b @$15,500 and a roth at $4k (will increase to $5k/2008). I have $16K in mm account as emergency fund, no credit card bills, single/no children. I could still invest $1-$3K per year, am I eligible to fully fund a traditional ira? If not, any suggestions for the $1-$3K?
2007-12-17 15:16:25 · 4 answers · asked by Bosslady 1 in Business & Finance ➔ Personal Finance
No. The lRS limits an individual's combined contributions to Roth IRAs and traditional IRAs to a total of $4,000 or $5,000, whatever the applicable limit. Since you're maxing out your Roth IRA, you can't put anything into a traditional IRA. For the remaining $1K to $3K, think about something simple and tax efficient like an index fund or an inexpensive lifecycle fund that is built on index funds (like the Vanguard target retirement funds).
2007-12-17 17:00:26 · answer #1 · answered by Uncle Leo 5 · 0⤊ 0⤋
I am not sure, but I think you could do both the Traditional and Roth. You should check with a retirement specialist or at the very least go speak with a financial advisor or investment advisor. I'm impressed with all the money you are able to save. I wish I could save that much.
2007-12-18 00:15:44 · answer #2 · answered by Anonymous · 0⤊ 0⤋
If you have already maxed out a Roth than no, you can not also do a traditional.
Just invest it in a mutual fund.
You will pay taxes as it grows but you will have the flexibility to do anything you want with it when you want to.
2007-12-18 09:14:31 · answer #3 · answered by Wayne Z 7 · 0⤊ 0⤋
no
2007-12-17 23:18:23 · answer #4 · answered by Anonymous · 0⤊ 0⤋