I'm quitting work on Friday and trying to decide what to do about my retirement savings. I'm thinking about setting up IRA and donate max each year. Is that what other people do? DH has 401k at work. We both have pensions as well.
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Right now we put 15% of my husband's income (or our household income) in Roth IRAs. When our home is paid for we will max those out and then possibly save more in additional IRAs. I rolled my teaching pension into a traditional Ira so that I wouldn't have to pay the taxes up front since we didn't want to come up with a large chunk of change right now.
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I have no idea what the percentage is but DH has a 401k, a Roth IRA (I think) and maybe. 3rd thing?? I can't remember
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We don't qualify for Roth and DH maxes his 401k. Think only option for me is traditional IRA.
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I rolled over my old work 401k into a Merrill lynch IRA and will contribute max amt per year. DH has a 491k and will max it out. We just took a year off of investing Bc we were on one low salary but picking things up again in the fall. We are also going to meet with a financial advisor this fall and make a better overall financial plan.
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@littlek: I have a simple plan. DH has a 401k and a thrift savings acct thru work.
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I have a Roth IRA
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Removed wrong info here.
There is a back door way to contribute to a Roth if your income limit is too high.
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@sunny: this year I still have the contributions I made to 401k. I was thinking DH would contribute $5k a year on my benefit with his earned income.
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@littlek: edited!
ok I think my comment before was wrong!
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@littlek: are you planning on doing anything on the side to earn some income? If so a SEP or a SIMPLE could possibly be options. But in most cases the best a SAHP is going to be able to do is contribute 5,500 of their spouse's earned income to a traditional or Roth IRA. Given that your husband is a high earner it's very possible that you will be eligible to contribute to a traditional IRA, but not allowed to deduct the contribution. Since I assume you'll at least consider rolling over your 401k into a traditional IRA be very careful to not commingle deductible and non deductible contributions because that makes for a nightmare when it comes time to take distributions. Honestly, the 401k and company match are a huge part of why I work.
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We max out an IRA (roth) each year for me.
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@MamaMoose: My current company's benefit SUCK. No match and terrible maternity leave policy.
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@littlek: I don't know anything about IRAs but I just wanted to wish you luck as a sahm!! Working is hard enough as it is and a company that has bad benefits just isn't worth it! Hopefully companies will start to realize good benefits attract good workers!
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Will you have 1 more paycheck you can use to contribute to your 401k?
When I decided to quit, we maxed out my 401k as much as we could by setting my contribution to 75% of my income. However if you're quitting on Friday it may not be possible to get that done since it sometimes takes 1-2 pay periods to take effect.
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@sunny: we won't have time to make any changes.
@yellowbird: thank you!
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