catch up contribution vs Roth IRA

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Topic Author
mrcross
Posts: 5
Joined: Sun Mar 25, 2012 3:27 pm

catch up contribution vs Roth IRA

Post by mrcross »

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
kaneohe
Posts: 6786
Joined: Mon Sep 22, 2008 12:38 pm

Re: catch up contribution vs Roth IRA

Post by kaneohe »

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?
Topic Author
mrcross
Posts: 5
Joined: Sun Mar 25, 2012 3:27 pm

Re: catch up contribution vs Roth IRA

Post by mrcross »

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).
livesoft
Posts: 86076
Joined: Thu Mar 01, 2007 7:00 pm

Re: catch up contribution vs Roth IRA

Post by livesoft »

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?
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bdpb
Posts: 1622
Joined: Wed Jun 06, 2007 3:14 pm

Re: catch up contribution vs Roth IRA

Post by bdpb »

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.
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