Retirement in Roth AND Traditional IRA?

[elessar78]

Year end is coming up and I'm just re-analyzing my positions, beliefs about certain things.

Up to this point I've mainly invested my retirement savings in 401(k) and rolled it over into traditional IRAs after I left that particular job. I did start funding a Roth.

I've read extensively on arguments for both and while I believe that the Roth is better for future tax implications, I'm not a 100% convinced that I'd stake our retirement on it.

Is it a wussy position to hedge your bets and, say, have my wife in a Roth and my stuff in traditional/401(k) (or vice versa)?

[feh]

There absolutely nothing wrong w/ using both Roths and traditional IRAs. We contribute to both types each year.

[Petunia 100]

I think it is very smart to have some of each. Both have advantages, so why not have both at your disposal?

My plan is that my traditional IRA will be for regular income, my Roth will be for big ticket items not in my monthly budget, such as a new roof or vehicle replacement. Taking the money from my Roth will not increase my taxable income or reduce my future regular income.

[bjl584]

Is it a wussy position to hedge your bets and, say, have my wife in a Roth and my stuff in traditional/401(k) (or vice versa)?

You can both have a Roth. I'd advise both you and your wife fully fund a Roth if possible. Then, you can fund your 401K.

Does she have a 401K?

Both type of accounts have their merits. I'd fund each type. Take the tax savings now and in the future.

[elessar78]

You can both have a Roth. I'd advise both you and your wife fully fund a Roth if possible. Then, you can fund your 401K.

Does she have a 401K?

Both type of accounts have their merits. I'd fund each type. Take the tax savings now and in the future.

Yes, her work offers a 401K.

So you're take is that each of us have both a ROTH and a 401k. Max out Roth contributions, then whatever is left direct to 401K?

[feh]

Yes, her work offers a 401K.

So you're take is that each of us have both a ROTH and a 401k. Max out Roth contributions, then whatever is left direct to 401K?

I'd contribute enough to the 401K to get full match, if there is one. After that, it's personal preference as to how much you put in each type of account (within limits).

[bjl584]

Yes, her work offers a 401K.

So you're take is that each of us have both a ROTH and a 401k. Max out Roth contributions, then whatever is left direct to 401K?

Sorry,
I typed that last post off the top of my head.

I would do the 401K first, then move to the Roth.

I currently put 10% into a 401K and max my Roth each year.

[Gina23]

I have a rollover 401k from a former job that I rolled over into a Traditional-IRA upon leaving. I also have a 401k through my current employer. I take advantage of my pre-tax benefits at my current employer, then fund my Roth, then anything else that I could possibly put into goes back to my current 401k. The traditional IRA rollover from my former job just sits there and looks at me, I have no incentive to put anything into it.