Comments on: Six Roth IRA and 401K Questions Everyone Asks

By: Estell

Estell — Tue, 01 Sep 2009 16:54:43 +0000

I’m 57, medically retired, and have a 401 IRA. Unfortunately my spouse is out of work and we can’t pay our mortgage. Should I turn my 401 into a Roth IRA so I can take the money out without penalty to pay our mortgage and buy food?

By: Kim

Kim — Fri, 19 Sep 2008 20:00:59 +0000

Hello,

I came across your website and I have to say, it is really helpful and I enjoy it!

I am college student going onto my 3rd year (hoping to finish by summer 2009) and I would to like to open a Roth IRA. But the thing is, I work on-campus and get paid through what is called “work study” which is through financial aid. However, I do not get taxed on the money I earn. Would I still be able to open one and contribute to it?

Thank you very much!

-Kim

By: Donnie

Donnie — Thu, 20 Dec 2007 06:25:27 +0000

To my understanding they are closing out the program entirely. We are supose to have a rep from their company come to my work place to talk to everyone. I just wanted to be ready, before hand, to know the best thing to do. I do not want to cash out and I knew if nothing else I would roll it over to an IRA. Just didn’t know if something better was out there or not. Thanks again for your help.

Donnie

By: jim

jim — Thu, 20 Dec 2007 01:08:24 +0000

Donnie: By closing out you mean closing the program entirely or to new money? If it’s closing entirely, rolling it over into an IRA is your best option. Cashing out would be bad because you’re so close to retirement and because the penalties are STEEP.

By: Donnie

Donnie — Thu, 20 Dec 2007 00:32:37 +0000

Hello
The company I currently work for is closing out the 401K program at the start of the new year.

What is the best thing for me to do with the money I have in my 401 K now. Should I roll it into a IRA or is there something better out there that I can do?

Cashing out is not an option. I am already 59 years old and I don’t have that many more years until I can retire.

I want to get the best bang for my buck so to say while I can.

Thank you for your help,

Donnie

By: jim

jim — Mon, 13 Aug 2007 00:18:00 +0000

The maximum is $4k per person total, take whatever you put into the Reg and whatever you put into the Roth, that sum can’t exceed $4k for 2007. It’s totally independent of the 401k.

By: Haren

Haren — Sun, 12 Aug 2007 15:14:13 +0000

For a working married couple -Can someone please spell out what are the max allowed to invest in Reg IRA and Roth IRA after maxing out 401K for the husband and partial ( of the fully allowed) 401K contributed for the Wife’s account??

By: Tim

Tim — Tue, 31 Jul 2007 18:26:31 +0000

if you are investing in 401K, make sure you keep abreast of the rules and any changes. it also is nice to know how long you have to contribute before becoming fully vested in the program.

Art Dinkin is correct on earned income. However, if one spouse is not working and the other spouse earns enough to cover the IRA, you can invest in IRAs for each person.

By: thomas

thomas — Tue, 31 Jul 2007 04:06:18 +0000

it’s always nice to have these refresher posts. validating my current savings is good too

By: Dennis

Dennis — Tue, 31 Jul 2007 03:25:37 +0000

nice quick and useful! I’m bookmarking this for future reference. Learning all of this stuff is kinda fun.

By: Art Dinkin

Art Dinkin — Mon, 30 Jul 2007 21:08:09 +0000

Good post! I like how concise your Q&A is.

Just want to clarify, you do eventually say it but IRA contirbutions (Roth or traditional) are limited to earned income so it does matter where the money comes from.

Also, as for employer contributions to a 401(k), they are almost always a percentage of either income or contributions. Some employers contribute regardless if the employee does or not. This makes the plan test better to allow more contributions by the highly compensated employees.

By: Martha

Martha — Mon, 30 Jul 2007 17:18:07 +0000

I have a Roth IRA with Fidelity (I rolled over my 401K), do you have any recommended picks for me?

Thanks Jim!