Roth 401k and Roth IRA

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bighead100
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Joined: Mon Apr 16, 2018 11:30 am

Roth 401k and Roth IRA

Post by bighead100 » Mon Apr 16, 2018 12:26 pm

Hi. I just knew this forum. I don't know English very well but trying to learn about retirement plans.
Here is my questions.
I contributed $2641.22 in 2017 to Roth 401k at company. Is it ok for me to contribute $ to Roth IRA?
I have not opened an Roth IRA yet. Do I still have time to do so for 2017 contribution?

TIA

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Earl Lemongrab
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Re: Roth 401k and Roth IRA

Post by Earl Lemongrab » Mon Apr 16, 2018 2:49 pm

1. Yes, the limits for 401(k) and IRA are unrelated. As long as you had sufficient eligible income, you can contribute up to $5500 for 2017 ($6500 if age 50+).

2. Yes, you have until tomorrow. I would start immediately.
This week's fortune cookie: "Your financial life will be secure and beneficial." So I got that going for me, which is nice.

bighead100
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Joined: Mon Apr 16, 2018 11:30 am

Re: Roth 401k and Roth IRA

Post by bighead100 » Mon Apr 16, 2018 3:02 pm

Earl Lemongrab wrote:
Mon Apr 16, 2018 2:49 pm
1. Yes, the limits for 401(k) and IRA are unrelated. As long as you had sufficient eligible income, you can contribute up to $5500 for 2017 ($6500 if age 50+).

2. Yes, you have until tomorrow. I would start immediately.
Thanks for replying. Should I open an IRA account at the bank or at Vanguard .....? what do you recommend?

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Earl Lemongrab
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Re: Roth 401k and Roth IRA

Post by Earl Lemongrab » Mon Apr 16, 2018 3:26 pm

I wouldn't use the bank unless you think you won't make it. In the long ago past, I was able to open an account at Vanguard essentially immediately, but I don't recent experience. Most brokerages will facilitate you getting your contribution made.
This week's fortune cookie: "Your financial life will be secure and beneficial." So I got that going for me, which is nice.

Alan S.
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Location: Prescott, AZ

Re: Roth 401k and Roth IRA

Post by Alan S. » Mon Apr 16, 2018 6:45 pm

There are income limits to be able to contribute to a Roth IRA, but not to a Roth 401k. The Roth IRA income limits start to limit your Roth contributions at 120k modified AGI if you are single or 189k modified AGI if you are married filing jointly.

If you make the Roth contribution and your income is too high, you can change it (recharacterize) later to a TIRA contribution or have it returned to you with any earnings.

pkcrafter
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Re: Roth 401k and Roth IRA

Post by pkcrafter » Mon Apr 16, 2018 9:21 pm

Thanks for replying. Should I open an IRA account at the bank or at Vanguard .....? what do you recommend?
Banks are expensive places to keep investments of any kind.

If you want to try to open an account tomorrow, try Schwab or Fidelity, but don't opt for any managed or advisory accounts . Both have low cost index funds. Chances are Vanguard won't get it done on time.

Just start out with cash and then we can help you select the right funds.

Paul
When times are good, investors tend to forget about risk and focus on opportunity. When times are bad, investors tend to forget about opportunity and focus on risk.

bighead100
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Joined: Mon Apr 16, 2018 11:30 am

Re: Roth 401k and Roth IRA

Post by bighead100 » Mon Apr 23, 2018 11:26 am

Thanks for every who had helped.
I was able to open Roth IRA account with Vanguard. Now can you help where to invest? I don't open 529 account for the children so money from Roth IRA could be withdrawed in the next ten years if I need to.
I am 42 and husband 52. Thanks much

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