Author Topic: 403(b)s, IRAs and Roths -- oh my!  (Read 1648 times)

hownowbrowncow

  • 5 O'Clock Shadow
  • *
  • Posts: 92
403(b)s, IRAs and Roths -- oh my!
« on: March 06, 2014, 02:53:51 PM »
Ok I know these are stupid questions but can someone tell me how to optimize my retirement savings for 2013 & 2014 please?

For 2013:
I contributed about $8.5k into my 403(b) Ė I didnít max it out because Iíve been paying off my student loan.  Can I contribute $5,500 to my Rollover IRA account as long as I do it before 4/15/14?  After tax money of course.

For 2014:
As of today, student loan is gone! 
So I will max out my 403(b) with $17,500.  What else can I do?  $5,500 to my Rollover IRA?  Can I open a Roth too? Do I have any other pre-tax options?

I am single and under 50 as far as limits go.  My gross income for 2014 will be about ~$90k.

meadow lark

  • CM*MW 2023 Attendees
  • Walrus Stache
  • *
  • Posts: 8022
  • Location: Louisiana
Re: 403(b)s, IRAs and Roths -- oh my!
« Reply #1 on: March 06, 2014, 03:19:37 PM »
What do you mean by "Rollover IRA?"  There are traditional IRA's (which you are not eligible for) and Roth IRA's (which you are eligible for.). A Rollover IRA just means it is an account you previously funded, and now want to change something about (what kind of IRA or what company manages it.)
So, yes, you can fund your 2013 Roth still, and your 2014 Roth.  Forget the rollover.
« Last Edit: March 06, 2014, 04:44:05 PM by Meadow Lark »

clarkm04

  • Stubble
  • **
  • Posts: 180
Re: 403(b)s, IRAs and Roths -- oh my!
« Reply #2 on: March 06, 2014, 03:35:12 PM »
You can contribute $5,500 total into either a Traditional pre-tax IRA or a post tax ROTH IRA.

Rollovers are usually done if you leave your current employer and would rather have your 403B money with a different provider.  Then, you can rollover your 403B and make it an IRA or you roll it over into a ROTH and pay taxes on it.

For instance, I did a rollover from my AXA 403B to Vanguard.