catch up contribution vs Roth IRA

Have a question about your personal investments? No matter how simple or complex, you can ask it here.

catch up contribution vs Roth IRA

Postby mrcross » Sun Feb 10, 2013 11:30 am

I recently paid off my mortage and was planning on increasing my wife's and mine contribution to our retirement plans to the maximum $22,500 (we are 55). My financial planner suggested a combination of catch up contributions and Roth IRA (we do qualify with our AGI). Your thoughts?

Mike
mrcross
 
Posts: 4
Joined: Sun Mar 25, 2012 4:27 pm

Re: catch up contribution vs Roth IRA

Postby kaneohe » Sun Feb 10, 2013 11:38 am

Do you get company matching on the catchup ? If not, isn't this the usual TIRA vs Roth question where it depends on whether your expected tax bracket at distribution is higher or lower than now?
kaneohe
 
Posts: 2460
Joined: Mon Sep 22, 2008 1:38 pm

Re: catch up contribution vs Roth IRA

Postby mrcross » Sun Feb 10, 2013 11:44 am

There is no match on either catch up contribution and yes, my expected retirement tax bracket will be lower (assuming Washington doesn't change the rules).
mrcross
 
Posts: 4
Joined: Sun Mar 25, 2012 4:27 pm

Re: catch up contribution vs Roth IRA

Postby livesoft » Sun Feb 10, 2013 12:01 pm

Do both.

Down the road, you can convert some of your 401(k) assets to Roth IRA anyways. WIll you be in a lower marginal income tax bracket down the road?
It's all about short-term opportunistic rebalancing due to a short-term change in one's asset allocation, uh, I mean opportunistic rebalancing, uh I mean rebalancing, uh I mean market timing.
livesoft
 
Posts: 33351
Joined: Thu Mar 01, 2007 9:00 pm

Re: catch up contribution vs Roth IRA

Postby bdpb » Sun Feb 10, 2013 2:52 pm

mrcross wrote:I recently paid off my mortage and was planning on increasing my wife's and mine contribution to our retirement plans to the maximum $22,500 (we are 55). My financial planner suggested a combination of catch up contributions and Roth IRA (we do qualify with our AGI). Your thoughts?

The max is 17,500 + 5,500 for a total of 23,000 for 2013.
bdpb
 
Posts: 1197
Joined: Wed Jun 06, 2007 4:14 pm


Return to Investing - Help with Personal Investments

Who is online

Users browsing this forum: alisa4804, BeerMoney, Beverage, BigJohn, CinDrew27, curo, Ganacel, Geologist, glosing, Greaps, harmony, JasonF, johnny847, kenyan, NKOTB, ourbrooks, Peculiar_Investor, sdsailing, Tayskiing01, Trevor, trueblueky, wallstreetevosil98, Willmunny and 120 guests