Comments on: Roth IRA and Traditional IRA Tax Implications in Plain English http://www.moneyhelpforchristians.com/roth-ira-traditional-ira-tax-plain-english/ Bible & Money Personal Finance Blog | Budget: Pay Off Debt: Give Thu, 09 Sep 2010 06:45:14 +0000 hourly 1 http://wordpress.org/?v=abc By: Money Hacks Carnival: Middle Name Pride Day Edition | Mighty Bargain Hunter http://www.moneyhelpforchristians.com/roth-ira-traditional-ira-tax-plain-english/comment-page-1/#comment-2465 Money Hacks Carnival: Middle Name Pride Day Edition | Mighty Bargain Hunter Wed, 10 Mar 2010 11:15:58 +0000 http://www.moneyhelpforchristians.com/roth-ira-and-traditional-ira-tax-implications-in-plain-english/#comment-2465 [...] Help for Christians explains the tax implications of Roth IRAs vs traditional [...] [...] Help for Christians explains the tax implications of Roth IRAs vs traditional [...]

]]> By: Another Sunday PF Roundup » JoeTaxpayer http://www.moneyhelpforchristians.com/roth-ira-traditional-ira-tax-plain-english/comment-page-1/#comment-2301 Another Sunday PF Roundup » JoeTaxpayer Sun, 28 Feb 2010 13:03:39 +0000 http://www.moneyhelpforchristians.com/roth-ira-and-traditional-ira-tax-implications-in-plain-english/#comment-2301 [...] at Money Help For Christians gave a good overview of the Roth IRA and Traditional IRA Tax Implications in Plain English. This is a topic that, despite all the press, people remain confused about. So I’ll continue [...] [...] at Money Help For Christians gave a good overview of the Roth IRA and Traditional IRA Tax Implications in Plain English. This is a topic that, despite all the press, people remain confused about. So I’ll continue [...]

]]> By: Darren http://www.moneyhelpforchristians.com/roth-ira-traditional-ira-tax-plain-english/comment-page-1/#comment-2209 Darren Mon, 22 Feb 2010 19:24:28 +0000 http://www.moneyhelpforchristians.com/roth-ira-and-traditional-ira-tax-implications-in-plain-english/#comment-2209 Craig, I dig your analogy between the Roth and Traditional IRA using McDonald's and Applebee's. Very creative! I would suggest a Roth for its tax-free withdrawals, and as a spin on the Tradtional IRA, I would suggest a 401k if you have one at work. The 401k has similar tax treatment to the Traditional IRA in that you get a deduction now, but pay later when you withdraw. However, the contribution limit for the 401k is a lot higher than an IRA ($16,500 vs. $5,000 in 2010). Furthermore, you can contribute to BOTH in the same year. Coverage under a 401k plan at work doesn't affect your ability to contribute to a Roth. So you could contribute up to a total of $21,500 this year towards your retirement if your income is within the Roth IRA income limit. In the case of the Roth and Traditional IRA, you can also contribute to both, but you can only contribute a combined total of $5,000 to both accounts. Even though we may think that tax rates will increase in the future, we can't be totally sure. By investing in both, we can take the safe road just like you said. This way, we're controlling everything in our power and not worrying about everything else. .-= Darren´s last blog ..Unique Code =-. Craig, I dig your analogy between the Roth and Traditional IRA using McDonald’s and Applebee’s. Very creative!

I would suggest a Roth for its tax-free withdrawals, and as a spin on the Tradtional IRA, I would suggest a 401k if you have one at work. The 401k has similar tax treatment to the Traditional IRA in that you get a deduction now, but pay later when you withdraw. However, the contribution limit for the 401k is a lot higher than an IRA ($16,500 vs. $5,000 in 2010).

Furthermore, you can contribute to BOTH in the same year. Coverage under a 401k plan at work doesn’t affect your ability to contribute to a Roth. So you could contribute up to a total of $21,500 this year towards your retirement if your income is within the Roth IRA income limit. In the case of the Roth and Traditional IRA, you can also contribute to both, but you can only contribute a combined total of $5,000 to both accounts.

Even though we may think that tax rates will increase in the future, we can’t be totally sure. By investing in both, we can take the safe road just like you said. This way, we’re controlling everything in our power and not worrying about everything else.
.-= Darren´s last blog ..Unique Code =-.

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