Comments on: No Reason not to have a Roth IRA

By: Tax Guru

Tax Guru — Mon, 23 Nov 2009 03:49:16 +0000

I’ve been included in taxations for lengthier then I care to admit, both on the private side (all my employed life story!!) and from a legal viewpoint since passing the bar and pursuing tax law. I’ve provided a lot of advice and rectified a lot of wrongs, and I must say that what you’ve put up makes perfect sense. Please carry on the good work – the more individuals know the better they’ll be outfitted to handle with the tax man, and that’s what it’s all about.

By: Joseph Sangl

Joseph Sangl — Fri, 21 Sep 2007 19:10:24 +0000

I LOVE my Roth IRA!!!

I contribute enough to my 403(b) to get the match money and everything else goes to the Roth IRA!

I also love my 529 College Savings Plan – which operates in much the same way as my Roth – after-tax contributions but tax-free for educational expenses!!!

By: Richard

Richard — Wed, 12 Sep 2007 18:02:10 +0000

2 Reason I do not have a Roth.

1) The amount you save each year for retirement does not exceed the amount necessary for full 401(k) employer match. I have decided calculated that I can save X percent each year for retirement. Since my employer matches 25% for that X percent, I would be losing out on an instant gain of 25% (not to mention that it otherwise would be after tax dollars) by putting the money into the Roth.

Whenever I have discussed this with friends, they say that if I’m only contributing up to their match, then I’m not contributing enough. To this I respond that my employeer (though this is rare) will match 25% on up to the government limit (15,500). So my X is actually a pretty hefty sum.

2) The other money I am saving (like for a downpayment) is for short term goals. For this reason I invest the money in an ING account. Although I could invest this money in an ROTH and pull it out when I need the house, what if the stock market drops right before I decide to buy this house. The one thing people neglect to mention about ROTHs is that although you can pull out your contributions, you can’t do that if the value of the account is below what you’ve put in. With my ING account I’m guarenteed (FDIC) to have the money I’ve put in.