Maxed out my 401k
09-24-2004, 10:25 PM
#1
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Maxed out my 401k
Fawking isht, by contributing 16% from my paycheck, by stupidity, I maxed out my 401k now I m going to miss out on free money my company contributes, 6%, ouch.
Any ways around this? Can I now start contributing to an IRA?
Any ways around this? Can I now start contributing to an IRA?
09-24-2004, 10:27 PM
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I think they raised the limit to IRA contribs to $3000 for this year. If you can't contribute to the 401k anymore and have the extra $$$, the put it in there.
09-26-2004, 08:36 AM
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NO, you contribuite to an IRA with post-tax $$$. However, it can be dedcuted from your income when you file your taxes for this year so it has the same net effect.
09-26-2004, 10:01 AM
#6
Blackbird baby..
Originally Posted by Chinisimo
i have a roth ira. i forgot what are the difference between the ira plans but the roth ira is supposedly the best one
Regular is pre-tax but you pay tax when you take it out.
Roth is way better deal.
You can still contribute to Roth if you're doing 401k.
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09-26-2004, 06:09 PM
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If you take $$$ out of your 401K 20% of the withdrawal is automatically deducted for taxes. Also, you will be hit with a 10% penalty if the $$$ is not replaced in the account within 60 days and you are under 59 1/2. Lastly, if you remove money from a 401k and do not replace it, it counts as income and is taxed accordingly.
Your best move to make is take the money you would normally put in your 401k and dump it in a Roth IRA. If you max that contribution ($3000) and still have more dump it in a money market until you decide what to do with it.
Your best move to make is take the money you would normally put in your 401k and dump it in a Roth IRA. If you max that contribution ($3000) and still have more dump it in a money market until you decide what to do with it.
09-30-2004, 10:08 AM
#10
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Originally Posted by PavDog
Roth is after-tax contribution but you don't pay taxes when you withdraw.
Regular is pre-tax but you pay tax when you take it out.
Roth is way better deal.
You can still contribute to Roth if you're doing 401k.
Regular is pre-tax but you pay tax when you take it out.
Roth is way better deal.
You can still contribute to Roth if you're doing 401k.
On a regular pre-tax IRA you get taxed on everything (earnings and contributions).
I've been putting away the max per year in a ROTH for awhile now, just started a 401K a couple of years ago tho'. Haven't maxed out the 401K yet, as I'm still debating on weither it's better to put the money against principle on the house, or in a 401K...
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