Alabama thread!

You're f'd! haha. JK! Daughter's are a very special present. I would have loved a boy but i have been blessed with two beautiful girls. Couldn't be happier!

 

You can contribute up to $5,500 a year. The intested earned on your contributions can be withdrawn tax free at age 59 1/2. Contributions can in most cases be withdrawn at anytime due to taxes already being paid before contributing. Also, if your a 1st Time home buyer or take money out for educational purposes in most cases you can withdraw the interest before 59 1/2 Tax Free to help fund.

Really a nice little tax free account. At some point you might make to much to contribute (you might be making that now). The 2018 dollar amount for single is $135k and married 199k. This is up from 2017.

Just tagging on to Pilots thread!

 

Ever!

 

Also, another advantage of the Roth is that when your other account (401k, Tradtional Roth) gets taxed the Roth can help minimize/offset that reduction of funds between what’s in those accounts and what actually comes to you after they’re taxed in retirement. We are using ours to help fund education for kids. If they don’t need it (fingers crossed). We can use for retirement.

 

It's early, and I just worked 13 1/2 hours last night (I'm still up). I have not talked to the boss, people understand, but thinking about a "26" ride?

 

As in december 26, tnf? Maybe?

 

you can also go to SSA.gov and fill out like 4 pages worth of info and find out what your projected social security payout will be at the age you intend to retire (I'm not sure how accurate that will be and or if there will be SS in 40 years but hopefully )

 

I'm glad you brought that up. I was going to start a 529 for my kids, but will now dump more $$ back into my Roth.

With my GI Bill, their first 2 years of college is already paid for.

 

That’s awesome! Two years paid for is like gold!!!! We have a 529 too. Our Advisor suggested the Roth to compliment the 529 and give us some flexibility. Don’t forget if your married and fall under the married earnings threshold then you and wife can contribute $11,000 together.

 

At galleria now. Actually kinda dead. My store isn't open so enjoying a chicken biscuit.

 

Dead

 

Spent several years of my life working in there!

 

By my store I mean the one I need to go shopping in.

 

Put all you can into 401k, always.

 

do you just always put into 401k and not even consider a roth?

 

I thought you owned a kiosk! LOL! I knew what you meant.

 

401(k), contributions are made on a pre-tax basis, and you'll pay taxes when you withdraw these funds in retirement. Roth 401(k) contributions are made with after-tax dollars, so you won't have to pay taxes on this money later in life.

401k you get to invest tax money and it earns money too and it lowers your earnings for the year so you pay less taxes for the year.

 

so there's a maximum for both, obviously...and your goal should be to reach the max in both, correct?

so I'm already at 7% in 401k (with a company match up to 6%). so do I max out 401k to the 18k, or do I begin a Roth now and work both of them towards a max as I can?

Sounds to me like both are necessary, and most things I'm reading say do a 401k to employer match, then start a Roth to max, then go back to your 401k.

 

@stronghammer the Roth 401k is same as we have been talking about. A regular 401k is offered by employers unless it is a state, charity or hospital. They are 403b’s I believe. These are just different codes for the laws they attach too. 401k is great but money tied directly to market. Good to be diverse in your investments. Not all eggs in one basket. If your employer matches then contribute up to the match so you get double invest. Example if employer matches up to 6% then you contribute 6% for a total of 12% going in.

 

so a Roth IRA is the same as Roth 401k?

I'm confused by Jeff's wording lol