Muchtolearn wrote:OP, if you both are going to medical school, 2-3K in a ROTH is peanuts down the road. You two will be severely cash strapped and need some pleasure. Use it.
EmergDoc wrote:I wrote this for another blog on the subject.
While it is important to seek balance in your savings/spending lifecycle, early Roth contributions are pretty valuable for a future doc.
yb wrote:Unless your fiancé is earning income, she won't be able to contribute to a Roth. In most cases, stipends do not count as earned income, unless they are paid for a specific service (like teaching). Do yourself a favor and take out as little as possible for living expenses. Then, when you are in residency, continue to live like a graduate/medical student. Also check out EmergDoc's blog:
(once you are married, and you start earning income, she could contribute to a Roth without any earned income.)
Renaissance Man wrote:Muchtolearn wrote:OP, if you both are going to medical school, 2-3K in a ROTH is peanuts down the road. You two will be severely cash strapped and need some pleasure. Use it.
I don't think it'd be "peanuts" as it would be tax free money growing for the future, but I do see your point. I just don't want to miss out on valuable years of growth for the portfolio, especially since we can use the ROTH. Knock on wood, I am hoping to be above the income threshold for using it in 7-10 years from now.
Renaissance Man wrote:Just going to give this a quick bump to ask about the PhD stipend....I have heard that is has to be taxed but you can't use it for a Roth? Do most Universities have a retirement program for students to put some of their stipend into?
yb wrote:Renaissance Man wrote:I didn't know that a stipend didn't count as income, even for a PhD?
Apparently, it is "income" and you have to pay tax on it, but it is not "earned income."
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