|
| I could use a little advice. My current job has no 401k program. My husband and I together make exactly $166k, which if I understand things properly, is the exact cut off point which prevents me from contributing to a Roth IRA on my own. My husband, who does have a 401k program through his company is contributing to that, but I'd like to be tucking away something as well.
What are my options, then, at this point? I'm a little clueless about this stuff, so point me in the right direction, please. |
Follow-Up Postings:
|
| Establish a Traditional IRA account. I believe you can both establish separate IRA accounts, allowing you as a couple to put aside $4K each (if under age 50) or $5K if 50 or over, annually. Any additional amounts you can save should be in separate taxable investment accounts. Any savings are better than none, obviously; so don't let the after-tax issue deter you. Any brokerage can set up automatic monthly deductions from your checking or savings accounts that allow an easy way to contribute without hassle. You'll want the lowest cost brokerage and funds, which means Fidelity, Vanguard, etc. Make sure you can allocate your contributions into at least 2-3 different funds to give you a balanced portfolio. Or, pick a low-cost target date fund, although I don't personally like them. It's difficult to evaluate past performance on them, and many trail the market averages. Good luck to you going forward! |
|
- Posted by harriethomeowner (My Page) on Wed, May 21, 08 at 21:53
| Is the $166k your gross income or your adjusted gross income? Roth IRA limits are based on modified AGI, not gross income. The IRS website explains it all. |
|
- Posted by bethesdamadman (My Page) on Thu, May 22, 08 at 6:16
| $166k was the limit for 2007. The phase-out in 2008 goes up to $169k, so you should be able to make a partial contribution this year. And, as harriet pointed out, the limited is based on modified AGI, not gross income. |
|
| Is your husband maxing his 401k? Or at very least contributing enough to get a match from his employer?(if there is a match)..before opening an account , this would be the 1st move i'd choose |
Please Note: Only registered members are able to post messages to this forum. If you are a member, please log in. If you aren't yet a member, join now!
Return to the Household Finances Forum
Instructions
- You must be a registered member and logged in to post messages on our forums.
- Posting is a two-step process. Once you have composed your message, you will be taken to the preview page. You will then have a chance to review the contents and make changes.
- After posting your message, you may need to refresh the forum page in order to see it.
- It is illegal to post copyrighted material without the owner's consent.
- HTML codes are allowed in the message field only.
- No advertising is allowed in any of the forums.
- If you would like to practice posting or uploading photos, please visit our Test forum.
- If you need assistance, please Contact Us and we will be happy to help.