One of the biggest stumbling blocks to getting started with an IRA (individual retirement arrangement) is knowing which type of one to sign up for. Should I sign up for a Roth or Traditional? We know that both are useful, but which one will give you most amount of benefit over the long term? To really understand this, it helps to know your Roth IRA basics and how they are different from those of a Traditional IRA. Although both are excellent tools to be used in conjunction with your IRA vs 401k strategy, it is also likely that one of them will be better suited to your individual needs. To help you understand the differences, here is a … [Read more...]
IRA Contribution Limits and How to Get the Most Out of Them
When you compare the IRA vs 401k, you'll find that the IRA contribution limits are considerably smaller. The major factors that will affect these rates will be your income level, marital status, and age. It is also very important to be aware that the type of IRA you choose for your money may also have hidden advantages (as we’ll illustrate in the example below). Traditional and Roth IRA Contribution Limits: The current IRA contribution limits for either a Traditional or Roth in 2013 are $5,500 for individuals age 49 and younger, and $6,500 for individuals age 50 and older (starting in the year that you turn 50). Both of these … [Read more...]