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Old 12-06-2006, 08:02 PM   #16
konex
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Is there a point in having a Roth IRA if I have a 401k already?

I know you get taxed when you eventually withdraw from your 401k but what's the catch with Roth?
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Old 12-06-2006, 08:09 PM   #17
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Quote:
Originally Posted by konex
Is there a point in having a Roth IRA if I have a 401k already?

I know you get taxed when you eventually withdraw from your 401k but what's the catch with Roth?
That you don't get taxed when you withdraw. That's a huge fricking difference. Let's say you have $10,000 in your account and you can get 14% a year for 30 years.... That's $500,000 30 years from now.

If you have a 401k, you'll pay at least 15% tax. That's $75,000 in tax right there that you wouldn't have to pay. And who knows, you might end up with a lot more money than that in your account, meaning more taxes to pay in the end.

The only time I'd use a 401k is if I had an employer that matched my contributions. In that case, I'd put in the full amount that the employer would match, but no more. After that I'd try to put my full $4,000 into a Roth, and if there's any left over after that, I guess into a regular non-retirement account.

Also worth noting about a Roth: you can withdraw your contributions any time you want with no penalty. You can't withdraw the gains, but you can take the full amount that you originally put in for any reason at any time. It's a sweet account.
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Old 12-06-2006, 08:14 PM   #18
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The only time I'd use a 401k is if I had an employer that matched my contributions

Mine does but I'm still gonna look into an IRA to go along with it. Thanks for the info
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Old 12-06-2006, 08:36 PM   #19
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ive got an ing account, got about 4k in it and i get rouchy 10-15 a month in interest so it allways nice getting money for free
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Old 12-06-2006, 08:39 PM   #20
RobertSwift31
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How do you withdraw and deposit with an online bank? or is it all on debit?
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Old 12-06-2006, 08:42 PM   #21
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the way i do it is i have my bank account online and i put money in the bank (real money) then trasfer it over from my bank to my savings over the net, and back and forth whenever i need it (not often) it takes 3 working days to show up though which is a bit of a downside but its bearable
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Old 12-06-2006, 08:46 PM   #22
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Quote:
Originally Posted by RobertSwift31
How do you withdraw and deposit with an online bank? or is it all on debit?
I planned to do direct deposit into the high interest account, and from there, transfer it to wherever I need it (either to my local checking account, or my brokerage account if I'm lucky).
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