Author Topic: Savings or Roth IRA  (Read 884 times)

donedeal511

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Savings or Roth IRA
« on: November 23, 2017, 05:07:54 PM »
Iíll be attending medical school in the fall. From now until then I am working extra shifts with a goal to have around 40k in savings that I will draw down for expenses during school. Should I put that money in my Roth IRA or just leave it in savings? Iíd probably spend that money down over 3 years supplemented by my wifeís income and me working on breaks and some weekends. I have about 20k already in my Roth as well so that would be About 60k once I start 10 months from now. Or do I just leave the Roth alone and keep it in my savings. Iíve read thereís no penalties or tax on withdrawing my contributions and earnings if for qualified educational expenses. Does that include cost of living expenses while a full time student ?

donedeal511

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Re: Savings or Roth IRA
« Reply #1 on: November 23, 2017, 05:12:02 PM »
** or any other higher interest earning account given the annual max of
Roth is ~5500

MDM

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Re: Savings or Roth IRA
« Reply #2 on: November 23, 2017, 06:34:35 PM »
Would need to know more about the family finances before suggesting what one of you should do. 

For a savings account, consider one of http://www.magnifymoney.com/blog/earning-interest/best-online-savings-accounts275921001.

terran

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Re: Savings or Roth IRA
« Reply #3 on: November 23, 2017, 09:30:24 PM »
If you're planning on spending this money over the next three years you might not bother, but if there's a chance  you can avoid using you may consider using a roth as an emergency fund since you'll otherwise lose that available space forever anyway. Worst that happens is you end up withdrawing contributions, best is that you can get by without it and you end up with more money in your roth than you would otherwise. Remember that a roth is just a bucket you put money in, not a type of investment, so if this is acting as money you're somewhat likely to need, put it in something unlikely to lose value, not stocks.
« Last Edit: November 23, 2017, 09:32:37 PM by terran »