Comments on: Max Out Your 2009 Retirement Contributions

By: Debbie

Debbie — Thu, 01 Jan 1970 00:00:00 +0000

Can a person who is employed and contributing the max to a company 401k plan also open a SEP IRA to contribute to from additional self employment income? If so what are the limits on both?

By: Britt (Your Roth IRA)

Britt (Your Roth IRA) — Thu, 01 Jan 1970 00:00:00 +0000

Also keep in mind that the $5,000 annual contribution limit for a Roth IRA or Traditional IRA applies to both taken together. So if, for instance, you contribute to both a Roth and a Traditional IRA, you can only contribute $5,000 collectively.

For example, you might contribute $2,500 to one and $2,500 to the other. Or $3,000 to one and $2,000 to the other. But you can NOT contribute $5,000 to your Roth IRA AND $5,000 to your Traditional IRA in the same year. The contribution limit applies across the board to both.

Unfortunately, this isn’t always clear to some people, and they end up making an excess contribution.

By: Bible Money Matters

Bible Money Matters — Thu, 01 Jan 1970 00:00:00 +0000

Great reminders for all of us to follow up on.. time to get cracking on maxing out the contributions!

By: Strick

Strick — Thu, 01 Jan 1970 00:00:00 +0000

For those with limited options (employer w/no 401K, over the income limit for deductible IRA or Roth IRA, etc) or just still have more money to stash away, don’t forget to look into an HSA account to stash another ~$6K. It can basically be used as a retirement account.

By: Leo Vidal, JD, MA, CPA

Leo Vidal, JD, MA, CPA — Thu, 01 Jan 1970 00:00:00 +0000

In a future column you might want to write about Roth 401(k) plans. I always talk about these in the continuing education courses I teach for CPAs on retirement plans. To summarize, it’s like the best of both worlds — higher limits in the 401(k) than the IRA etc. and you get the Roth tax-free income benefit after you retire.

By: PT Money

PT Money — Thu, 01 Jan 1970 00:00:00 +0000

Thanks for swinging by, Wojciech. I knew I was leaving something out. Thanks for spotting that one.

By: Wojciech @ Fiscal Fizzle

Wojciech @ Fiscal Fizzle — Thu, 01 Jan 1970 00:00:00 +0000

Not to make your monthly totals even more daunting than they already are (although if you can affort that, I agree – you should be contributing the max), but most two-income families are able to have two IRAs and two 401(k)’s at their disposal.

Soooo, if they’re so inclined, can effectively double these limits, which is great for growing out those retirement funds. (Unless some family limits kick in, which I know of none).

Great post – I hope many of us can take advantage of these fantastic retirement “vehicles.”