Jump-Start Your Retirement Plan, February 2015 - Live Chats, Q&As: Free Advice on Retirement, Investing, Personal Finance -- Kiplinger

Kiplinger Live Chat

Jump-Start Your Retirement Plan, February 2015

Kiplinger is teaming up with the National Association of Personal Financial Advisors (NAPFA), whose planners will answer questions on retirement planning and other financial challenges. Submit your questions here and get free personalized financial advice on Thursday, February, 19, from 9 a.m. to 5 p.m. ET.

    Tisha: Assuming that you are making the maximum contribution to your 401(k), I don't see a lot that you can do to lower your taxes. Are you itemizing your deductions? If so, you should be able to get some benefit from state taxes, charitable deductions, etc.
    Hi Tisha. Deferring into the 401(k) is smart while you have access to it. When you don't, you may be eligible to make deductible IRA contributions (depends on your filing status).
    Does it make any sense to open a Roth IRA at age 60 or is it better to open a Traditional IRA that can provide an immediate deductible contribution? We are eligible for either one this year. My preliminary tax calculation results in a $3,000 increase if we open a Roth IRA. However, if a Traditional IRA is opened, a $1,000 decrease would result. So the immediate net cost difference is $4,000. Assuming my tax bracket remains the same rate in the future should I consider opening a Roth?
    I'm 31 married with a 9 month old. My wife and I do not plan on have more children. Im torn between how I should be saving. I currently save in my company's Roth 401K up to the match. Currently, I'm also saving approx. 39,000 a year. I'm also saving 1,500 in my daughter's 529. My logic is to save as much as I can in a taxable investment account which will primarily be used for retirement. When my daughter is of college age, I would use the dividend interest during those years to cover the gap that the 529 won't cover. If I max out the 401k ($18K), I won't be able to tap the dividend interest because I will only be 49 years old. Should I continue to max out my Roth 401k up to the match and save agressively in a taxable account or should I take advantage of the Roth tax benefits by contributing the full $18,000 and investing the remaining available dollars in a taxable investment account?
    For those collecting a military retirement should they still have an emergency savings? If so, how many months?
    How can I tell which is better, to begin converting tax deferred income to a Roth before my RMD starts in about 2 years and risk having to pay higher rates for Medicare now and having to pay the taxes now or just waiting until the RMD is actually required and doing the same things then? How important is a Roth to someone who is 68 if they don't have one now?
    Hello! I am 44 and have the opportunity to contribute money to TSP with up to 5% government matching. But I also have a 4 yr loan at 11.49% interest, the balance of which is about $38,000. What's the better strategy - pay off the loan in 4 years or faster (I'm on track for a 2.5 yr payoff), then add that $900 payment to my TSP or Roth IRA, - or max out the 5% matching now, and eat the interest on the loan? Thanks!
    Roth 401K vs. Traditional 401k - I have about 400K in traditional 401k. My wife has about 120K in a traditional 401K. We're both maxing out and getting max employer contribution. We're both 38. I've recently started making 401K contributions to a Roth 401K option that my work allows me to make. I make $223K per year and my wife makes about $40K per year. I think we're in the 30% tax bracket or so. We also aren't very good about saving money that we do take home. Is it a bad idea for me to be saving in Roth 401K at this point?
    Mark your calendars for your next Jump-Start Your Retirement Plan day on June 18. See you then!
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