Joined: Mon Oct 18, 2004 4:50 pm Posts: 3955 Location: Leaving Here
Well, for people who don't have the option of an automatic deduction from their payroll pre-tax into a traditional one (isn't $10K the max for that?), having a ROTH is a good thing. I think the ROTHs are taxed at a lower rate when it comes time to withdraw from them, or something.
Joined: Tue Oct 19, 2004 5:21 pm Posts: 362 Location: Red Sox Nation via AZ
I put $2000 (the limit at the time) in a RIRA when I turned 18 for the prior year, plus $2000 for the current year. 5 years later, I only WISH I could be that responsible. After 5 years of a shitty mutual fund market, I have $1500 left. Damn you, small cap growth.
_________________ "When the going gets weird, the weird turn pro."
-Hunter S. Thompson
RIP 1937-2005
Well, for people who don't have the option of an automatic deduction from their payroll pre-tax into a traditional one (isn't $10K the max for that?), having a ROTH is a good thing. I think the ROTHs are taxed at a lower rate when it comes time to withdraw from them, or something.
c-
You don't need automatic deductions for a traditional IRA. Any bank will set you up and you can contribute as often or as infrequently as you like. The funds put in are tax free. In fact you could make a contribution right up until 4/15/05 and deduct it from your 2004 taxes.
You're confusing IRAs with 401(k)s I think - 401(k)s have a higher threshhold - $15,000 this year I believe.
Roths are tax free when you withdraw, unlike traditional IRAs that are taxed at the time of withdrawal. The difference is that traditional IRAs are made with pretax money (you deduct it from your return) whereas ROTHs are created with after tax money. If you think you'll be better off paying the taxes later because you'll be in a lower tax bracket, go traditional. If you think you'll be rolling in dough after you retire, go ROTH.
Of course, there are other differences, but this is the main difference.
Joined: Sun Oct 17, 2004 12:26 pm Posts: 3859 Location: Jersey
PJDoll wrote:
cltaylor12 wrote:
Well, for people who don't have the option of an automatic deduction from their payroll pre-tax into a traditional one (isn't $10K the max for that?), having a ROTH is a good thing. I think the ROTHs are taxed at a lower rate when it comes time to withdraw from them, or something.
c-
You don't need automatic deductions for a traditional IRA. Any bank will set you up and you can contribute as often or as infrequently as you like. The funds put in are tax free. In fact you could make a contribution right up until 4/15/05 and deduct it from your 2004 taxes.
You're confusing IRAs with 401(k)s I think - 401(k)s have a higher threshhold - $15,000 this year I believe.
Roths are tax free when you withdraw, unlike traditional IRAs that are taxed at the time of withdrawal. The difference is that traditional IRAs are made with pretax money (you deduct it from your return) whereas ROTHs are created with after tax money. If you think you'll be better off paying the taxes later because you'll be in a lower tax bracket, go traditional. If you think you'll be rolling in dough after you retire, go ROTH.
Of course, there are other differences, but this is the main difference.
Joined: Sun Oct 17, 2004 12:25 pm Posts: 3567 Location: Swingin from the Gallows Pole
PJDoll wrote:
cltaylor12 wrote:
Well, for people who don't have the option of an automatic deduction from their payroll pre-tax into a traditional one (isn't $10K the max for that?), having a ROTH is a good thing. I think the ROTHs are taxed at a lower rate when it comes time to withdraw from them, or something.
c-
You don't need automatic deductions for a traditional IRA. Any bank will set you up and you can contribute as often or as infrequently as you like. The funds put in are tax free. In fact you could make a contribution right up until 4/15/05 and deduct it from your 2004 taxes.
You're confusing IRAs with 401(k)s I think - 401(k)s have a higher threshhold - $15,000 this year I believe.
Roths are tax free when you withdraw, unlike traditional IRAs that are taxed at the time of withdrawal. The difference is that traditional IRAs are made with pretax money (you deduct it from your return) whereas ROTHs are created with after tax money. If you think you'll be better off paying the taxes later because you'll be in a lower tax bracket, go traditional. If you think you'll be rolling in dough after you retire, go ROTH.
Of course, there are other differences, but this is the main difference.
She maybe confusing a Traditional IRA or a Roth IRA with a Simple IRA. Some employers like mine have Simple IRA plans which are similar to 401(k) programs. Even if you have a Simple IRA with your employer you can still contribute to a Traditional or Roth IRA.
_________________ This space for sale by owner. Contact within.
Joined: Tue Oct 19, 2004 5:21 pm Posts: 362 Location: Red Sox Nation via AZ
zutmon wrote:
PJDoll wrote:
cltaylor12 wrote:
Well, for people who don't have the option of an automatic deduction from their payroll pre-tax into a traditional one (isn't $10K the max for that?), having a ROTH is a good thing. I think the ROTHs are taxed at a lower rate when it comes time to withdraw from them, or something.
c-
You don't need automatic deductions for a traditional IRA. Any bank will set you up and you can contribute as often or as infrequently as you like. The funds put in are tax free. In fact you could make a contribution right up until 4/15/05 and deduct it from your 2004 taxes.
You're confusing IRAs with 401(k)s I think - 401(k)s have a higher threshhold - $15,000 this year I believe.
Roths are tax free when you withdraw, unlike traditional IRAs that are taxed at the time of withdrawal. The difference is that traditional IRAs are made with pretax money (you deduct it from your return) whereas ROTHs are created with after tax money. If you think you'll be better off paying the taxes later because you'll be in a lower tax bracket, go traditional. If you think you'll be rolling in dough after you retire, go ROTH.
Of course, there are other differences, but this is the main difference.
She maybe confusing a Traditional IRA or a Roth IRA with a Simple IRA. Some employers like mine have Simple IRA plans which are similar to 401(k) programs. Even if you have a Simple IRA with your employer you can still contribute to a Traditional or Roth IRA.
I think you're right. As long as the company has less then 100 employees, than this is a Simple IRA.
_________________ "When the going gets weird, the weird turn pro."
-Hunter S. Thompson
RIP 1937-2005
Joined: Sun Oct 17, 2004 12:25 pm Posts: 3567 Location: Swingin from the Gallows Pole
jackironsversion wrote:
zutmon wrote:
PJDoll wrote:
cltaylor12 wrote:
Well, for people who don't have the option of an automatic deduction from their payroll pre-tax into a traditional one (isn't $10K the max for that?), having a ROTH is a good thing. I think the ROTHs are taxed at a lower rate when it comes time to withdraw from them, or something.
c-
You don't need automatic deductions for a traditional IRA. Any bank will set you up and you can contribute as often or as infrequently as you like. The funds put in are tax free. In fact you could make a contribution right up until 4/15/05 and deduct it from your 2004 taxes.
You're confusing IRAs with 401(k)s I think - 401(k)s have a higher threshhold - $15,000 this year I believe.
Roths are tax free when you withdraw, unlike traditional IRAs that are taxed at the time of withdrawal. The difference is that traditional IRAs are made with pretax money (you deduct it from your return) whereas ROTHs are created with after tax money. If you think you'll be better off paying the taxes later because you'll be in a lower tax bracket, go traditional. If you think you'll be rolling in dough after you retire, go ROTH.
Of course, there are other differences, but this is the main difference.
She maybe confusing a Traditional IRA or a Roth IRA with a Simple IRA. Some employers like mine have Simple IRA plans which are similar to 401(k) programs. Even if you have a Simple IRA with your employer you can still contribute to a Traditional or Roth IRA.
I think you're right. As long as the company has less then 100 employees, than this is a Simple IRA.
Yeah I believe for 2004 the max. contribution per employee was $9,000 and for 2005 it is $10,000. And I believe it goes up again for 2006. Grrrrr...time to take more $$$$ out of the old paycheck.
_________________ This space for sale by owner. Contact within.
Well, for people who don't have the option of an automatic deduction from their payroll pre-tax into a traditional one (isn't $10K the max for that?), having a ROTH is a good thing. I think the ROTHs are taxed at a lower rate when it comes time to withdraw from them, or something.
c-
You don't need automatic deductions for a traditional IRA. Any bank will set you up and you can contribute as often or as infrequently as you like. The funds put in are tax free. In fact you could make a contribution right up until 4/15/05 and deduct it from your 2004 taxes.
You're confusing IRAs with 401(k)s I think - 401(k)s have a higher threshhold - $15,000 this year I believe.
Roths are tax free when you withdraw, unlike traditional IRAs that are taxed at the time of withdrawal. The difference is that traditional IRAs are made with pretax money (you deduct it from your return) whereas ROTHs are created with after tax money. If you think you'll be better off paying the taxes later because you'll be in a lower tax bracket, go traditional. If you think you'll be rolling in dough after you retire, go ROTH.
Of course, there are other differences, but this is the main difference.
She maybe confusing a Traditional IRA or a Roth IRA with a Simple IRA. Some employers like mine have Simple IRA plans which are similar to 401(k) programs. Even if you have a Simple IRA with your employer you can still contribute to a Traditional or Roth IRA.
I think you're right. As long as the company has less then 100 employees, than this is a Simple IRA.
Yeah I believe for 2004 the max. contribution per employee was $9,000 and for 2005 it is $10,000. And I believe it goes up again for 2006. Grrrrr...time to take more $$$$ out of the old paycheck.
Good call Zutmon, and yes, more money out. I can't wait to retire!!
Joined: Mon Oct 18, 2004 4:50 pm Posts: 3955 Location: Leaving Here
zutmon wrote:
She maybe confusing a Traditional IRA or a Roth IRA with a Simple IRA. Some employers like mine have Simple IRA plans which are similar to 401(k) programs. Even if you have a Simple IRA with your employer you can still contribute to a Traditional or Roth IRA.
My employer has no IRA option nor opportunity, so I'm "on my own" to manage my own. I get a hard check each week, no automatic deposit, and my employer can't withdraw to deposit into an IRA on my behalf. Very old school employement.
Joined: Mon Oct 18, 2004 4:50 pm Posts: 3955 Location: Leaving Here
Quote:
Roths are tax free when you withdraw, unlike traditional IRAs that are taxed at the time of withdrawal. The difference is that traditional IRAs are made with pretax money (you deduct it from your return) whereas ROTHs are created with after tax money. If you think you'll be better off paying the taxes later because you'll be in a lower tax bracket, go traditional. If you think you'll be rolling in dough after you retire, go ROTH.
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