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
catch up contribution vs Roth IRA
Re: catch up contribution vs Roth IRA
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?
Re: catch up contribution vs Roth IRA
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).
Re: catch up contribution vs Roth IRA
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?
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?
Re: catch up contribution vs Roth IRA
The max is 17,500 + 5,500 for a total of 23,000 for 2013.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?