Lately some of my readers have been emailing me questions about what the best path is to take when it comes to your retirement savings. Even though it would be nice to invest in as many different types of retirement funds as possible, sometimes our ability to save money is limited, and we have to make a choice about which one to use first. So while the homepage of IRA vs 401k Central lists all the pros and cons of each type of investment, some people just want to know – between a Roth IRA vs 401k, which one should I start off with in order to get the best return? Fortunately there is a strategy to investing in BOTH that can get you the … [Read more...]
Your Retirement Accounts – The Best Tax Saving Investment
For as long as men have ruled other men, taxes have been a necessary way of life. They fund the government and provide the civil services that we depend on in our everyday lives. But as important of a notion as that is, no one likes paying them. It’s something that we just have to do … but not always. If you’d like to hang on to your money, then look no further than your retirement accounts to find the best tax saving investment – your IRA and 401k. … [Read more...]
What Does IRA Stand For Anyways?
If you’ve ever wondered “ what does IRA stand for ?”, then you may be surprised to find out that the IRS defines it as an “individual retirement arrangement”. This is slightly different than the common definition of an “individual retirement account”. Although similar, an individual retirement account is simply one form of the broader range of individual retirement arrangements that exist under the US Publication 590 (the laws where IRA’s come from). … [Read more...]
What Is a Non Deductible IRA and How Do I Contribute To One?
If you think you make too much income to stash away your money away into an individual retirement arrangement (IRA), then I have good news for you. Very few people realize that you can contribute to a non deductible IRA regardless of your income level and still enjoy the benefits of tax free investment growth. Using this account to boost your retirement nest egg will make a great addition in your overall strategy to maximize the potential of your 401k and IRA savings. … [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...]