Thread: UAL B Fund
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Old 04-29-2016 | 12:51 PM
  #15  
fishforfun
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Joined: Aug 2011
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Originally Posted by Grumble
402g limit is 53,000 total. 35k employer, 18k employee. You'll make too much to qualify for a Roth IRA.

As far as the 401k, you can contribute your 18k under either Roth (pay taxes now) or traditional (par taxes later) or any combination. Personally I contribute 50/50 Roth/traditional. Spreads the tax liability between now and then.

Bottom line, you can't contribute more than 18k/year and be tax deferred on either end.
You can and should contribute to a traditional IRA (after every pre tax option is maxed out) then roll it into a Roth. At least the funds will grow tax free and I don't believe there is a limit to the amoun you can roll. It may create a tax on it but still less than taking it out when you start withdrawing it.

But this is a pilot board and your talking finances so.....there's that.......
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