I'm 22. Can I contribute up to 15% for 401K & invest another $4000 in tax free Roth IRA?  Or can I only do 1?
478272
I know that you can do both.
985867
A roth account might be good or bad for you.  They're not good for everyone.\n\nA 401k or IRA is just a type of account, and has nothing to do with how much of a return you can get from your investment.  If you are investing in mostly a diverse mix of stock funds, you should expect a long term average return of 7-9%.  In some years you will get more (like 13%), and some years you will lose money).  In either type, you'll be investing in a mix of mutual funds.  The benefit of a roth IRA has to do with taxes.\n\nHere's the benefit:  With a 401k or traditional IRA, you pay no income taxes now on the money you put in.  You pay income taxes when you withdraw the money in retirement.  With a roth IRA, you pay the income taxes now, and pay no taxes on the money you withdraw in retirement. \n\nIf your income tax rate is lower now than it will be in retirement, you do not want a roth account.  If your income tax rate will be higher in retirement than it is now, then a roth account would be good for you.\n\nHERE'S HOW YOU SWITCH:\nYou "rollover" your 401k balance to a traditional (pretax) IRA.  That means you tell the company that has your 401k to transfer the money directly into an IRA.  As long as you don't receive a check payable to yourself, you'll pay no taxes or penalties.  You then "convert" the traditional IRA to a roth IRA.  This is something the company that handles the IRA does for you.  Basically, they take taxes straight out of the IRA and send them to the IRS.  This makes the money in the IRA after tax, or "roth" money.\n\nBUT...\n\nTo be able to transfer the money from the 401k to the IRA, you'll have to have already stopped working for the company.  AND your company might have the "roth 401k" feature, which allows you to contribute to your 401k plan with after tax money and have exactly the same benefit as the roth IRA.  ALSO if your company matches your contributions to your regular 401k, that will probably outweigh any benefit you could possibly get from the roth IRA.\n\nYou need to talk to the company that manages your 401k plan to find out what your options are.  And call a company that does IRAs to find out more details on the roth IRA to find out if it would be a good fit for you.  Try Fidelity or Vanguard.
917591
In a Roth, you can withdraw any amount you put in tax free...if you take out more (contributions+earnings) then the amount above contributions (earnings) is taxable.  If you are younger than 59 1/2...which you are...then it would also have a 10% penalty.  But! Since you are only taking out contributions...no worries.
1022786
Invest in your companies 401K plan. If they match your contribution, they can double your money right away.  Ask you HR person for details.
45804
You can invest up to 14K (and more) through a solo 401K.TD Waterhouse/ameritrade offers the account with low fees. So do some other financial institutions. There may be other instruments such as SEP etc.. \nwatch for fees, maximum annual investment. \nSpeak to someone at your bank/broker.
505836
On January 1, you can make your 2007 Roth IRA contributions The latest this can be done is actually April 15, 2008, but early contribution allows an extra 14 months of tax-free growth.
579781
The IRS max limit is per individual, not per plan.\n\nYou can contribute a max of $15,000 total between any number of plans or your salary which ever is lower.\n\nIf you only earned $10,000 you can only contribute $10,000 not the max amount of $15,000
1153541
1. Put money away in a 401K.   If your company matches it, you can make money on it right away.  Second, it reduces your taxable income (as you are not charged taxes on the money you save), and might put you in a lower tax bracket.  You can save $14,000 annually.\n\nTry $50 a month for starters.\n\nIf your company does not have a 401Kput money into a IRA.  Again, the money you put away is not taxed.  You can save up to $4000 annually.
524763
Under IRS rules, you can only roll over a 401k into a Traditional IRA and wait at least one year before moving it into Roth IRA. Remember, 401k sitting in previous employers will not have any growth. It is a frozen account until you roll it over.\n\nIRAs are always a good plan to save for retirement. You can pick any mutual funds that is offered by a financial institution (most mutual funds require a minimum initial deposit of $1000). And can be tax free after age 59 1/2 when you start using it.
372937
First pay credit cards if you have them. It makes no sense to invest if you have credit cards with 18% interest and investments give you around 12%. After you pay your cards get a ROTH IRA. You can put in 4k max a year on them and their interest grows tax free.
57714
This is just my opinion :)...\n\n401K reasonable. Couple of things may happen...where the company contribution goes and where your contribution goes. Also, generally takes 3 to 5 years to be fully vested so you "get" the entire company contribution. If you go this way, take advantage of the maximum employer contribution. It's free money!\n\nROTH IRA  Taxed before you put it in so you aren't taxed when you take it out (Traditional IRA's are the exact opposite). Suggest you contact a broker, start a monthly contribution to a ROTH in a solid mutual fund. A good broker will sit with you and discuss your risk tolerance.\n\nIf you can afford to do a 401 and an IRA, do both.\n\nRegardless of what plan you choose, get started now and make monthly contributions.
12676
With the exception of the contribution of money to an IRA, no.  The year is already over and you cannot go back in time and change history.  You may not be able to deduct money contributed to an IRA depending on what your and any potential spouse's wages were.  Contributing to an IRA would only reduce your taxes proportionate to your tax rate.  So if you were in the 15% braket at $2000 contribution would at most reduce your taxes by $300.
65352
You can usually draw out up to 50% but you have to pay it back like a loan (monthly payments) to yourself with whatever interest rate your 401k has in place usually around 8-12%.\n whatever you draw out to keep before retirment age you will be hit with penalties.\n Get ahold of your 401k people for details on rates and withdrawl policies.
274365
A Roth IRA is an investment of after-tax money.  The current contribution limit is 4K a year.  You may withdrawl the money you have contributed at any time, for any reason without taxes or penalty.  \n\nAfter 5 years you may also withdraw the earnings for qualified expenses such as a first home purchase or educational expenses without penalty.  There are no age limits on your ability to make contributions to a ROTH IRA.  \n\nThe big advantage for younger investors of the ROTH IRA is that young people often have lower incomes and tax rates, so they will come out far ahead putting in money that they only had to pay low taxes on.
1176821
I think...your question...is kinda confusing.  There is the Tradional IRA, Roth IRA and 401(k).  I am not sure there is anything such as Tradional 401(K).\n\nif you're talking about 401(k) - you can move your 401(k) from previous employer to your current employer's 401(k) , OR if you want more options, besides 10 or so mutual funds your current employer offers ( or similar number of funds offered by your previous employer ), you will be better off, rolling your 401(k), into a ROLLOVER IRA. Of course, everytime you trade you're going to pay commissions, which may not be the case in 401(K)\n\nif you're talking about Traditional IRA to ROTH IRA : if you meet certain IRS criteria ( such as be Single, or file jointly if you're married and above all have a Adjusted Gross Income of less than 100K. )  If you think you're going to be in the same Tax Bracket as you are today or above that, when you're 50s ( i think 57 or something like that ),  you will be better off, paying taxes on your earnings in your traditional IRA, TODAY,  at your current lower federal income tax  bracket, so you don't have to pay ANYTHING in your ROTH IRA - even if grows to be Billions of $$$$.  As usual, there are the inherent benefits of ROTH IRA - you will not be required to withdraw monies from it ( with Traditional IRA you will be forced to take out money in 50s and pay taxes on it - if you don't you pay penalty ). You can pass on the ROTH IRA to your kids, etc.\n\nAs usual, consult a financial advisor, as each case varies.  \n\nOne more thing....If your considering converting traditional IRA to ROTH, be prepared to shell out taxes on your earnings/income - from out of your own pocket - DON'T CONSIDER PAYING IT OFF WITH YOUR EARNINGS/INCOMES FROM TRADITIONAL IRA - YOU WILL PAY EARLY WITHDRAWL PENALTY AT 10%
725173
First of all, 401(k) contributions and IRA contributions do not figure into itemized deductions.\n\nIf your joint income was over $85,000, you are not eligible to deduct anything for 2006 for an IRA contribution. Your participation in the 401(k) during the early part of the year cannot be undone. If your joint income is under $75,000, you may still make a deductible IRA contribution; and if it is over $75,000 but less than $85,000 the amount of the allowed deduction will be limited.
952059
I'd also like to add that the funding of a Roth or any other IRA is by calendar year Jan1-Dec31. You may also make a contribution and designate it for 2006 anytime prior to the 2007 tax filing deadline on or about April 15th. The limit she can contribute for 2006 is $4,000 or the amount of earned income, whichever is less.\n\nVanguard, Fidelity, and T. Rowe Price are all good companies and your mother decides on what type of investments she wants based on her risk tolerance.