Comments on: Choosing The Best IRA For Your Needs: Traditional Or Roth http://amateurassetallocator.com/2009/03/04/choosing-the-best-ira-for-your-needs-traditional-or-roth/ Amateur Asset Allocator Fri, 19 Mar 2010 17:28:22 +0000 http://wordpress.org/?v=2.9 hourly 1 By: IRA Early Withdrawal Penalty Exemptions - Amateur Asset Allocator http://amateurassetallocator.com/2009/03/04/choosing-the-best-ira-for-your-needs-traditional-or-roth/comment-page-1/#comment-6566 IRA Early Withdrawal Penalty Exemptions - Amateur Asset Allocator Mon, 04 Jan 2010 11:01:29 +0000 http://amateurassetallocator.com/?p=1108#comment-6566 [...] to waive the usual 10% penalty.  Unless otherwise noted, the following exemptions apply to both Roth and Traditional IRAs.  One important caveat is that the IRA in question must be at least 5 years old (on the tax [...] [...] to waive the usual 10% penalty.  Unless otherwise noted, the following exemptions apply to both Roth and Traditional IRAs.  One important caveat is that the IRA in question must be at least 5 years old (on the tax [...]

]]> By: Will it ever stop raining | The Wisdom Journal http://amateurassetallocator.com/2009/03/04/choosing-the-best-ira-for-your-needs-traditional-or-roth/comment-page-1/#comment-4077 Will it ever stop raining | The Wisdom Journal Fri, 15 May 2009 05:04:15 +0000 http://amateurassetallocator.com/?p=1108#comment-4077 [...] Choosing the best IRA for your needs: Traditional or Roth [...] [...] Choosing the best IRA for your needs: Traditional or Roth [...]

]]> By: Obama Proposes Special One-Time 10% Tax On Retirement Accounts - Amateur Asset Allocator http://amateurassetallocator.com/2009/03/04/choosing-the-best-ira-for-your-needs-traditional-or-roth/comment-page-1/#comment-3828 Obama Proposes Special One-Time 10% Tax On Retirement Accounts - Amateur Asset Allocator Wed, 01 Apr 2009 13:03:08 +0000 http://amateurassetallocator.com/?p=1108#comment-3828 [...] value of all American retirement plans, including both defined-contribution plans such as 401k and IRA plans and defined-benefit pension plans.  That’s right, ladies and gentlemen: if this bill passes [...] [...] value of all American retirement plans, including both defined-contribution plans such as 401k and IRA plans and defined-benefit pension plans.  That’s right, ladies and gentlemen: if this bill passes [...]

]]> By: When Should You Sell A Losing Mutual Fund? - Amateur Asset Allocator http://amateurassetallocator.com/2009/03/04/choosing-the-best-ira-for-your-needs-traditional-or-roth/comment-page-1/#comment-3823 When Should You Sell A Losing Mutual Fund? - Amateur Asset Allocator Tue, 31 Mar 2009 13:01:18 +0000 http://amateurassetallocator.com/?p=1108#comment-3823 [...] NOTE: This only applies when you’re trading within a tax-advantaged account such as an IRA or 401k, since any cost savings would be eaten up by the tax bill in a regular taxable [...] [...] NOTE: This only applies when you’re trading within a tax-advantaged account such as an IRA or 401k, since any cost savings would be eaten up by the tax bill in a regular taxable [...]

]]> By: Weekend Link Love - Amateur Asset Allocator http://amateurassetallocator.com/2009/03/04/choosing-the-best-ira-for-your-needs-traditional-or-roth/comment-page-1/#comment-3806 Weekend Link Love - Amateur Asset Allocator Sun, 29 Mar 2009 23:43:42 +0000 http://amateurassetallocator.com/?p=1108#comment-3806 [...] was hosted by Four Pillars and what a lovely festival it was, not least of all because my post Choosing The Best IRA For Your Needs was included!  But mine wasn’t the only great post this week.  Here are some of the [...] [...] was hosted by Four Pillars and what a lovely festival it was, not least of all because my post Choosing The Best IRA For Your Needs was included!  But mine wasn’t the only great post this week.  Here are some of the [...]

]]> By: Learn The Basics of Investing - Edition #197 of Carnival of Personal Finance http://amateurassetallocator.com/2009/03/04/choosing-the-best-ira-for-your-needs-traditional-or-roth/comment-page-1/#comment-3786 Learn The Basics of Investing - Edition #197 of Carnival of Personal Finance Mon, 23 Mar 2009 02:12:17 +0000 http://amateurassetallocator.com/?p=1108#comment-3786 [...] Amateur Asset Allocator helps choose the best IRA for your needs. [...] [...] Amateur Asset Allocator helps choose the best IRA for your needs. [...]

]]> By: Investing 101 - Taxes and Investing | cnwins http://amateurassetallocator.com/2009/03/04/choosing-the-best-ira-for-your-needs-traditional-or-roth/comment-page-1/#comment-3770 Investing 101 - Taxes and Investing | cnwins Wed, 18 Mar 2009 01:13:48 +0000 http://amateurassetallocator.com/?p=1108#comment-3770 [...] for more on the tax treatment of various investment vehicles, including choosing the best IRA for your retirement account (Traditional or Roth?) and the best mutual fund companies for your [...] [...] for more on the tax treatment of various investment vehicles, including choosing the best IRA for your retirement account (Traditional or Roth?) and the best mutual fund companies for your [...]

]]> By: Week in Review: 15% - America’s Real Unemployment Rate « Personal Finance http://amateurassetallocator.com/2009/03/04/choosing-the-best-ira-for-your-needs-traditional-or-roth/comment-page-1/#comment-3747 Week in Review: 15% - America’s Real Unemployment Rate « Personal Finance Thu, 12 Mar 2009 18:38:32 +0000 http://amateurassetallocator.com/?p=1108#comment-3747 [...] Choosing The Best IRA For Your Needs: Traditional Or Roth- Obama promises to cut annual deficit in half by 2013- I Don’t Want Your Freakin’ Extended [...] [...] Choosing The Best IRA For Your Needs: Traditional Or Roth- Obama promises to cut annual deficit in half by 2013- I Don’t Want Your Freakin’ Extended [...]

]]> By: The David http://amateurassetallocator.com/2009/03/04/choosing-the-best-ira-for-your-needs-traditional-or-roth/comment-page-1/#comment-3727 The David Mon, 09 Mar 2009 16:59:00 +0000 http://amateurassetallocator.com/?p=1108#comment-3727 Good summary...I'm hoping to branch out into #2 this year. I'm already investing in my company's roth 401K, which has the benefit of built in diversification. My contributions go in as a Roth, whereas their match is traditional. @ Sky - I think one thing you may want to consider if that there are much stricter income limits on an IRA than there is a 401K. I could be mistaken, but I think there is no income limit on a 401K, just a contribution limit of $16,500. However, with the IRA, there is an income limit ($166,000 - $176,000), as well as a much lower contribution limit ($5000). That's why the traditional logic says only invest in a 401K to get the match, then go to outside IRAs. If your income goes up, you may lose the ability to contribute at all to an IRA. However, you can always put more money in a 401K later. Good summary…I’m hoping to branch out into #2 this year.

I’m already investing in my company’s roth 401K, which has the benefit of built in diversification. My contributions go in as a Roth, whereas their match is traditional.

@ Sky – I think one thing you may want to consider if that there are much stricter income limits on an IRA than there is a 401K.

I could be mistaken, but I think there is no income limit on a 401K, just a contribution limit of $16,500.

However, with the IRA, there is an income limit ($166,000 – $176,000), as well as a much lower contribution limit ($5000).

That’s why the traditional logic says only invest in a 401K to get the match, then go to outside IRAs.

If your income goes up, you may lose the ability to contribute at all to an IRA. However, you can always put more money in a 401K later.

]]> By: Sky http://amateurassetallocator.com/2009/03/04/choosing-the-best-ira-for-your-needs-traditional-or-roth/comment-page-1/#comment-3725 Sky Mon, 09 Mar 2009 14:31:09 +0000 http://amateurassetallocator.com/?p=1108#comment-3725 I just have one question. The company that I work for has an excellent amount of options for the Roth/Traditional 401k. They match 50% of 8%, so a max of 4%. So far, I don't see the point of getting an IRA when I have plenty of options with my 401k. I am currently able to contribute 17% of my income to a Roth 401k, but would I benefit from only taking up to the company match and then opening an IRA for the rest? I also like the simplicity I have now with it all being in one place. So far, most people seem to choose an IRA because it has more diverse funds, but I don't seem to have that problem. Maybe in another article you could talk about reasons to choose a 401k vs an IRA, and their differences. I just have one question. The company that I work for has an excellent amount of options for the Roth/Traditional 401k. They match 50% of 8%, so a max of 4%. So far, I don’t see the point of getting an IRA when I have plenty of options with my 401k. I am currently able to contribute 17% of my income to a Roth 401k, but would I benefit from only taking up to the company match and then opening an IRA for the rest? I also like the simplicity I have now with it all being in one place. So far, most people seem to choose an IRA because it has more diverse funds, but I don’t seem to have that problem.

Maybe in another article you could talk about reasons to choose a 401k vs an IRA, and their differences.

]]>