Comments on: Reader Question: Should I Have a Roth IRA? http://www.consumerismcommentary.com/2007/06/15/reader-question-should-i-have-a-roth-ira/ A premiere personal finance blog, established 2003. Within, Flexo discusses his own experiences with money, and he and other authors comment on a wide range of personal finance topics. Sun, 21 Mar 2010 00:53:54 +0000 http://wordpress.org/?v=2.9.1 hourly 1 By: Johnhttp://www.consumerismcommentary.com/2007/06/15/reader-question-should-i-have-a-roth-ira/#comment-119294 John Sun, 07 Oct 2007 19:29:51 +0000 http://www.consumerismcommentary.com/2007/06/15/reader-question-should-i-have-a-roth-ira/#comment-119294 Lost Opportunities (comment #9), If you are ineligible for Roth ased on limits, would you also not be eligible contributing to Traditional IRA. Am i missing something ? Lost Opportunities (comment #9),
If you are ineligible for Roth ased on limits, would you also not be eligible contributing to Traditional IRA. Am i missing something ?

]]> By: Chrishttp://www.consumerismcommentary.com/2007/06/15/reader-question-should-i-have-a-roth-ira/#comment-116824 Chris Sat, 07 Jul 2007 13:50:32 +0000 http://www.consumerismcommentary.com/2007/06/15/reader-question-should-i-have-a-roth-ira/#comment-116824 The other alternative is the Roth 401(k), which many companies will be instituting in the next year. It allows people to put money into a Roth account without hitting the income limits. The other alternative is the Roth 401(k), which many companies will be instituting in the next year. It allows people to put money into a Roth account without hitting the income limits.

]]> By: thomashttp://www.consumerismcommentary.com/2007/06/15/reader-question-should-i-have-a-roth-ira/#comment-116810 thomas Sat, 07 Jul 2007 00:26:56 +0000 http://www.consumerismcommentary.com/2007/06/15/reader-question-should-i-have-a-roth-ira/#comment-116810 totally agree with the advice mentioned in the post. The one thing I would add is that with the Roth IRA (or traditional) you can invest in a number of different things - stocks, mutual funds, etc, as opposed to the 401k where you have limited options.With the Roth you also have the ability to withdraw your deposits without penalty or taxes in case of an emergency (although I'd recommend against this). totally agree with the advice mentioned in the post. The one thing I would add is that with the Roth IRA (or traditional) you can invest in a number of different things – stocks, mutual funds, etc, as opposed to the 401k where you have limited options.

With the Roth you also have the ability to withdraw your deposits without penalty or taxes in case of an emergency (although I’d recommend against this).

]]> By: No Credit Needed » Blog Archive » No Creativity Needed (Just Linking To Some Great Reads!)http://www.consumerismcommentary.com/2007/06/15/reader-question-should-i-have-a-roth-ira/#comment-116379 No Credit Needed » Blog Archive » No Creativity Needed (Just Linking To Some Great Reads!) Sun, 24 Jun 2007 02:49:02 +0000 http://www.consumerismcommentary.com/2007/06/15/reader-question-should-i-have-a-roth-ira/#comment-116379 [...] Flexo wrote an AMAZING post about opening a Roth IRA and a 401K.  I’ve already linked to this post ONCE, but I’m linking to it AGAIN.  Why?  You need to read it! [...] [...] Flexo wrote an AMAZING post about opening a Roth IRA and a 401K.  I’ve already linked to this post ONCE, but I’m linking to it AGAIN.  Why?  You need to read it! [...]

]]> By: No Credit Needed » Blog Archive » 403b Contribution Limits / Roth IRA Contribution Limits For 2008http://www.consumerismcommentary.com/2007/06/15/reader-question-should-i-have-a-roth-ira/#comment-116192 No Credit Needed » Blog Archive » 403b Contribution Limits / Roth IRA Contribution Limits For 2008 Thu, 21 Jun 2007 10:44:59 +0000 http://www.consumerismcommentary.com/2007/06/15/reader-question-should-i-have-a-roth-ira/#comment-116192 [...] By the way, if you are wondering if you should focus on your 403b (or 401K) or a Roth IRA, may I suggest that you read this excellent article over at Consumerism Commentary?  Flexo does a great job of addressing the 401K/Roth IRA [...] [...] By the way, if you are wondering if you should focus on your 403b (or 401K) or a Roth IRA, may I suggest that you read this excellent article over at Consumerism Commentary?  Flexo does a great job of addressing the 401K/Roth IRA [...]

]]> By: NCNhttp://www.consumerismcommentary.com/2007/06/15/reader-question-should-i-have-a-roth-ira/#comment-115909 NCN Tue, 19 Jun 2007 16:03:10 +0000 http://www.consumerismcommentary.com/2007/06/15/reader-question-should-i-have-a-roth-ira/#comment-115909 This is the best post I've read about this subject. I have a 403b and a Roth... but no match! So, I max out Roth first and then put as much as I can in 403b... NCN This is the best post I’ve read about this subject. I have a 403b and a Roth… but no match! So, I max out Roth first and then put as much as I can in 403b…
NCN

]]> By: Lost Opportunitieshttp://www.consumerismcommentary.com/2007/06/15/reader-question-should-i-have-a-roth-ira/#comment-115293 Lost Opportunities Mon, 18 Jun 2007 15:46:04 +0000 http://www.consumerismcommentary.com/2007/06/15/reader-question-should-i-have-a-roth-ira/#comment-115293 ntguru (comment #5),I'm in the same boat as you are. I am stuffing my traditional IRA and waiting for 2010. <a href="http://www.usatoday.com/money/perfi/columnist/block/2006-05-16-roth_x.htm" rel="nofollow">link</a>Use any extra money (e.g. tax deduction from contributing to traditional IRA) for other investments (stock market in my case). ntguru (comment #5),

I’m in the same boat as you are. I am stuffing my traditional IRA and waiting for 2010. link

Use any extra money (e.g. tax deduction from contributing to traditional IRA) for other investments (stock market in my case).

]]> By: Roundup for week of 10 June 2007 at Mighty Bargain Hunterhttp://www.consumerismcommentary.com/2007/06/15/reader-question-should-i-have-a-roth-ira/#comment-115211 Roundup for week of 10 June 2007 at Mighty Bargain Hunter Mon, 18 Jun 2007 13:13:38 +0000 http://www.consumerismcommentary.com/2007/06/15/reader-question-should-i-have-a-roth-ira/#comment-115211 [...] Consumerism Commentary answers a reader’s question as to whether to have a Roth IRA or not. [...] [...] Consumerism Commentary answers a reader’s question as to whether to have a Roth IRA or not. [...]

]]> By: Posts I Enjoyed Last Week | The Sun’s Financial Diary | A Personal Finance Blog on Saving and Investinghttp://www.consumerismcommentary.com/2007/06/15/reader-question-should-i-have-a-roth-ira/#comment-115027 Posts I Enjoyed Last Week | The Sun’s Financial Diary | A Personal Finance Blog on Saving and Investing Sun, 17 Jun 2007 14:40:54 +0000 http://www.consumerismcommentary.com/2007/06/15/reader-question-should-i-have-a-roth-ira/#comment-115027 [...] at Consumerism Commentary answers a reader’s question about whether to start a Roth IRA. My answer would be yes, as long as there are money left after the 401(k) account is properly [...] [...] at Consumerism Commentary answers a reader’s question about whether to start a Roth IRA. My answer would be yes, as long as there are money left after the 401(k) account is properly [...]

]]> By: fivecentnickel.comhttp://www.consumerismcommentary.com/2007/06/15/reader-question-should-i-have-a-roth-ira/#comment-114895 fivecentnickel.com Sat, 16 Jun 2007 21:25:53 +0000 http://www.consumerismcommentary.com/2007/06/15/reader-question-should-i-have-a-roth-ira/#comment-114895 Weekly Roundup - 06/15/07...Well, here we are… In a few days we’ll be taking off for vacation, so we’ve been madly rushing around trying to tie up loose ends in advance of our departure. If you’re interested in contributing a guest post, please let me know... Weekly Roundup – 06/15/07…

Well, here we are… In a few days we’ll be taking off for vacation, so we’ve been madly rushing around trying to tie up loose ends in advance of our departure. If you’re interested in contributing a guest post, please let me know…

]]> By: ntguruhttp://www.consumerismcommentary.com/2007/06/15/reader-question-should-i-have-a-roth-ira/#comment-114643 ntguru Fri, 15 Jun 2007 20:08:56 +0000 http://www.consumerismcommentary.com/2007/06/15/reader-question-should-i-have-a-roth-ira/#comment-114643 What is the recommendation for those who are fortunate enough to be ineligible for Roth contributions? What is the recommendation for those who are fortunate enough to be ineligible for Roth contributions?

]]> By: Ancahttp://www.consumerismcommentary.com/2007/06/15/reader-question-should-i-have-a-roth-ira/#comment-114628 Anca Fri, 15 Jun 2007 17:11:18 +0000 http://www.consumerismcommentary.com/2007/06/15/reader-question-should-i-have-a-roth-ira/#comment-114628 I like the flexibility and diversity of having both, especially because it's so hard to know what my income/tax level will be when I retire. I feel like I have more control over my ROTH than my 401(K) because it's not tied to my job. I do what you suggested and I put 6% (of my pre-tax income) into the 401(K) to get the max matching, and the rest (9%) into the ROTH. I like the flexibility and diversity of having both, especially because it’s so hard to know what my income/tax level will be when I retire. I feel like I have more control over my ROTH than my 401(K) because it’s not tied to my job. I do what you suggested and I put 6% (of my pre-tax income) into the 401(K) to get the max matching, and the rest (9%) into the ROTH.

]]> By: Flexohttp://www.consumerismcommentary.com/2007/06/15/reader-question-should-i-have-a-roth-ira/#comment-114626 Flexo Fri, 15 Jun 2007 16:34:50 +0000 http://www.consumerismcommentary.com/2007/06/15/reader-question-should-i-have-a-roth-ira/#comment-114626 Bnrl: that's a good rule of thumb, but for a 23 year-old who may retire 40 years from now, one can only take a wild guess as far as tax rates. Bnrl: that’s a good rule of thumb, but for a 23 year-old who may retire 40 years from now, one can only take a wild guess as far as tax rates.

]]> By: broknowrchlatrhttp://www.consumerismcommentary.com/2007/06/15/reader-question-should-i-have-a-roth-ira/#comment-114622 broknowrchlatr Fri, 15 Jun 2007 16:25:09 +0000 http://www.consumerismcommentary.com/2007/06/15/reader-question-should-i-have-a-roth-ira/#comment-114622 Wehne comparing vs a traditional ROTH, here is a simple checklist to see which you should choose. If both of the following are true, take the Tradtional IRA over a ROTH 1) I plan to have quite a bit less taxable income when I retire than I do now. 2) I think income tax rates will remain the same or lower when I retire.But, in general, the ROTH is nearly always the best option. Wehne comparing vs a traditional ROTH, here is a simple checklist to see which you should choose. If both of the following are true, take the Tradtional IRA over a ROTH
1) I plan to have quite a bit less taxable income when I retire than I do now.
2) I think income tax rates will remain the same or lower when I retire.

But, in general, the ROTH is nearly always the best option.

]]> By: klerghttp://www.consumerismcommentary.com/2007/06/15/reader-question-should-i-have-a-roth-ira/#comment-114602 klerg Fri, 15 Jun 2007 13:53:27 +0000 http://www.consumerismcommentary.com/2007/06/15/reader-question-should-i-have-a-roth-ira/#comment-114602 I'm not a finacial professional either but I 100% agree with Flexo. A Roth IRA is an excellent way to save for retirement. I’m not a finacial professional either but I 100% agree with Flexo. A Roth IRA is an excellent way to save for retirement.

]]>