Is there an IRA max?

**disneysteve** · 12-20-2013, 05:01 AM

The IRA max is $5,500/year if you are under 50, $6,500 if you are 50 or above. That is the total IRA max. It doesn't matter if it is a traditional or a Roth. You can fund both but only to a total contribution of $5,500.

**Mark91** · 12-20-2013, 05:46 AM

Originally posted by disneysteve View Post

The IRA max is $5,500/year if you are under 50, $6,500 if you are 50 or above. That is the total IRA max. It doesn't matter if it is a traditional or a Roth. You can fund both but only to a total contribution of $5,500.

Thank you Disney Steve.

I am employed but my company is small and they don't offer 401k or anything. I also have a small side business on the side but that is only bringing in a few hundred a month for now.
What other options do I have to invest for retirement, and must I do this by Dec 31st to count for 2013?

**disneysteve** · 12-20-2013, 05:55 AM

If you have your own business, you can also fund a SEP-IRA. I'm not positive about the limits on that but they are much more generous than the traditional and Roth. I also have some side income and fund a SEP in addition to maxing Roths for my wife and I.

IRAs of all types need to be funded by April 15th of 2014 to count for the 2013 tax year. There might be an extension on the SEP if you get a filing extension but check with your accountant for the details.

**Mark91** · 12-20-2013, 07:40 AM

Is there anything I can use as a pretax investment (like a 401k) if my company doesn't offer me a 401k

**disneysteve** · 12-20-2013, 08:05 AM

Originally posted by Mark91 View Post

Is there anything I can use as a pretax investment (like a 401k) if my company doesn't offer me a 401k

If you are eligible for the deduction, you can do the traditional IRA instead of the Roth. Personally, I'm a fan of paying taxes now and never having to pay again so I'd do the Roth no matter what. I even got my daughter to open a Roth this year and she was only 17.

**Mark91** · 12-20-2013, 08:42 AM

I would rather a Roth too, its smart to get your daughter started!

But I lived on a tighter budget than I needed to in 2013 so I can save more than $5,500 away for retirement this year....where do you suggest I put my money after I max my Roth? I'm not sure I will qualify for the min to qualify for SEp.

**disneysteve** · 12-20-2013, 09:18 AM

Originally posted by Mark91 View Post

I can save more than $5,500 away for retirement this year....where do you suggest I put my money after I max my Roth?

I'm in the same boat. Extra money goes into taxable accounts, primarily Vanguard S&P 500 fund. It isn't a retirement account but we personally consider it to be one. Being an index fund, it is fairly tax efficient which is what you want to look for.

Is there an IRA max?