Author Topic: Convince Me To Max SIMPLE IRA  (Read 644 times)

steevven1

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Convince Me To Max SIMPLE IRA
« on: February 06, 2017, 09:39:07 PM »
I have no employer plan and currently max out a Traditional IRA.

Wife has a SIMPLE IRA at work and contributes exactly enough to get the full employer match. She also maxes out a Roth IRA.

We dump all the rest into a taxable brokerage account.

Ages 26/27, on track to FIRE in 5-8 years.

Are we doing it wrong? Why or why not?

Radagast

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Re: Convince Me To Max SIMPLE IRA
« Reply #1 on: February 06, 2017, 09:56:05 PM »
You should max out the Simple IRA. Avoiding taxes gives you more money. You can eventually roll it over using the usual IRA-Roth IRA process. Depending on your tax rate, probably either both of you should be contributing to Roth or both to traditional IRA. If your tax bracket is 15% probably it will be both to traditional.