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Start of the year, new Roth deposit


Dirtyhip
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6 minutes ago, Dirtyhip said:

:D  Time to fund for 2022.  :D

Did you hit max last year?  Maybe some don't use this method.  I like having both a 401K and a Roth.  

Yes to both and I get the 50+ "make-up extra" to give as well.   I still have to figure out if it is worth swapping to a Roth 401k or I should just stick with my regular 401k.  That's on my list for this year.

Oh, and I fund incrementally, not all at one time.

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3 minutes ago, bikeman564™ said:

I have a 401k, but I still want to switch to a roth.

You can should have a IRA (Roth or regular) and a 401k (traditional or Roth) at the same time.  So, you could go Roth IRA and Roth 401k, or Roth IRA and traditional 401k (like me right now). Or traditional/traditional, etc..

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1 minute ago, Razors Edge said:

You can should have a IRA (Roth or regular) and a 401k (traditional or Roth) at the same time.  So, you could go Roth IRA and Roth 401k, or Roth IRA and traditional 401k (like me right now). Or traditional/traditional, etc..

ha, yes. My plan was is  to stop contributing to the regular 401k, and use the roth 401k.  And/or begin my own roth IRA. My company matches x% so I would  definitely contribute so I can get their free money.

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8 minutes ago, Square Wheels said:

I can't.  I give a lot to my ex, a fair amount to my college kid.  I save what I can.

I feel ya.  I don’t have an ex but now that my kids are on their own I’m at a point where we can really focus on retirement savings. 

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Just now, ChrisL said:

I feel ya.  I don’t have an ex but now that my kids are on their own I’m at a point where we can really focus on retirement savings. 

I have a couple more years of child support / college.  I'll likely take that money and put it toward the mortgage. 

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So what is the maximum limit one can contribute this yr. for a Roth?  Assuming one contributed to max other years?

In Canada our similar govn't vehicle is $6,000 this year. It's a Tax-Free Savings Account. For certain alot of young'uns are probably blazing along by playing the stock market...if they have full-time job or generous relative.

Anyway, this may or may not be my final yr. contributing to Registered Retirement Savings Plan similar to 401K.  I've always contributed to both PLUS my pay cheque is automatically docked for contributing to my employer's public sector pension which my employer matches (plus abit more I think). 

Because I've worked for 9 different employers, I get a tiny pension from the 2 different govn't employers I worked for. It is tiny, poverty level. So I have to fund  my own.

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13 minutes ago, bikeman564™ said:

ha, yes. My plan was is  to stop contributing to the regular 401k, and use the roth 401k.  And/or begin my own roth IRA. My company matches x% so I would  definitely contribute so I can get their free money.

You're young, definitely strongly consider the Roth 401k.  But start a Roth IRA regardless.  And max max max it all.   

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8 minutes ago, shootingstar said:

So what is the maximum limit one can contribute this yr. for a Roth?  Assuming one contributed to max other years?

In Canada our similar govn't vehicle is $6,000 this year. It's a Tax-Free Savings Account. For certain alot of young'uns are probably blazing along by playing the stock market...if they have full-time job or generous relative.

Anyway, this may or may not be my final yr. contributing to Registered Retirement Savings Plan similar to 401K.  I've always contributed to both PLUS my pay cheque is automatically docked for contributing my employer's public sector pension which my employer matches (plus abit more I think). 

Because I've worked for 9 different employers, I get a tiny pension from the 2 different govn't employers I worked for. It is tiny, poverty level. So I have to fund  my own.

26000 in pre-tax 401K, 403b

7000 in Roth.  These funds are post tax funds.  Roth is a tax free vessel.  Any gains are not taxed. 

These amounts are catch up amounts for people over 50.

I think under 50 is 6500 roth and I am not sure for regular IRA

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If one doesn't contribute to TSFA for several years, it  doesn't matter what age you are (but must be 18 yrs. old and up), irrespective of your age, the same amounts to a catch-up applies.  Hope TSFA vehicle still exists for CAnadians for decades. Yes, our gains are not taxed. One can withdraw money and not be  taxed, unlike  RRSP.

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1 hour ago, Dirtyhip said:

:D  Time to fund for 2022.  :D

Did you hit max last year?  Maybe some don't use this method.  I like having both a 401K and a Roth.  

We have been talking out of our Roth

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I have two 401k's, a 403b, and an old-fashion IRA. The IRA has been getting a minimum of 4% interest for decades. However I haven't added any money to them since I retired. On the flip side, I haven't removed any money from them either. I'll have to start removing some money in a few years.

I also have some old Savings Bonds which are coming up to their maturity date. 

I have a $250,000 Universal Life policy which I pay $147 a month. It's worth about $47,000 gross cash value.

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