Retirement Funds

[dovy2]

For someone always doing standard deduction, hardly ever paying taxes (due to very low income).. any reason NOT to max roth IRA

[AsherO]

For someone always doing standard deduction, hardly ever paying taxes (due to very low income).. any reason NOT to max roth IRA

How does someone making that little max a Roth IRA?

[ExGingi]

How does someone making that little max a Roth IRA?

Many ways, as long as making more than the actual max IRA contribution in EARNED INCOME.

Have you never seen real-estate investors with little to no taxable income but lots of cash flow?

[Kobe Bryant]

For someone always doing standard deduction, hardly ever paying taxes (due to very low income).. any reason NOT to max roth IRA

What specifically is the question? Vs. what?

[ltttc]

For someone always doing standard deduction, hardly ever paying taxes (due to very low income).. any reason NOT to max roth IRA

No. Take full advantage if you can. (One day, when your income will be much higher you will not even have the Roth option)

[AsherO]

Many ways, as long as making more than the actual max IRA contribution in EARNED INCOME.

Have you never seen real-estate investors with little to no taxable income but lots of cash flow?

Not my line of business. I don’t usually know what the tax return of a real estate investor might look like.

[dovy2]

What specifically is the question? Vs. what?

Vs. saving green dollars.
Someone mentioned to me something about not being eligible for Medicare etc if one has loaded retirement funds

[AsherO]

Vs. saving green dollars.
Someone mentioned to me something about not being eligible for Medicare etc if one has loaded retirement funds

Isn’t Medicare way down the road? If you’re worried about assets and Medicare qualification then there are Medicare/estate planners who can help.

[dovy2]

Isn’t Medicare way down the road? If you’re worried about assets and Medicare qualification then there are Medicare/estate planners who can help.

I know it's down the roaf.. I just went to know now which road to take...
My father bh paid off 10+ weddings with all mezumon saved for over 30+ years...
According to what I understand with a roth, it's a no-brainer.. you can always take from the principal as needed for each wedding, and after age 60 I'll still be left with a couple hundred k...
I'm trying to find out if there's any catches

[ExGingi]

Vs. saving green dollars.
Someone mentioned to me something about not being eligible for Medicare etc if one has loaded retirement funds

Medicare eligibility has nothing to do with assets or income.

If you mean Medicaid, then a ROTH will be a non-issue as the income won't increase your AGI, and it can be withdrawn/liquidated without tax consequences after age 59.5

[ari3]

For someone always doing standard deduction, hardly ever paying taxes (due to very low income).. any reason NOT to max roth IRA

If you might need the the money. The profits are mostly stuck till retirement.

Otherwise it is a prudent move (and if your income is low enough you may even qualify for the saver tax credit).

An added benefit is that the income in the IRA won't count for EIC and some programs as opposed to if you invest in a taxable account.

[eliteflyer]

How does #5 fit in with any of the above? Might be non-tax efficient (and return is fixed at mortgage interest saving).

+ 1 and also risky from perspective of lack of diversification and not very liquid (vs. e.g. mutual funds or other equity/bond investments)

[eliteflyer]

I know it's down the roaf.. I just went to know now which road to take...
My father bh paid off 10+ weddings with all mezumon saved for over 30+ years...
According to what I understand with a roth, it's a no-brainer.. you can always take from the principal as needed for each wedding, and after age 60 I'll still be left with a couple hundred k...
I'm trying to find out if there's any catches

I don't follow how this would work. Although you can take principal from a roth account before 59.5, the funds need to be returned to the account within 60 days or be subject to the 10% penalty on the portion kept. Not to mention, you would lose out on the growth of those funds if you raid them early and the whole point of a Roth is tax free growth.

[eliteflyer]

Which is why I wrote MY priorities. I'd take the fixed return of mortgage prepayments and shift other investment allocation toward risky assets to reflect my overall risk appetite.

In your 30s you've got a long runway of growth vs. plowing all those funds into a low interest rate mortgage. Only reason IMHO to consider a prepayment of principal on the mortgage is if it would change your leverage level to qualify you for a lower rate mortgage.

[ExGingi]

I don't follow how this would work. Although you can take principal from a roth account before 59.5, the funds need to be returned to the account within 60 days or be subject to the 10% penalty on the portion kept.

-1
Simply incorrect. ROTH IRA contribution ls can be WITHDRAWN (tax and penalty free) at any time. They cannot be put back in (except within 60 days as a rollover).

[ushdadude]

I have no need for more tax deferment this year but would still like to contribute to my retirement. Should I still just put the money in my sep ira or is there a better option?

[ExGingi]

I have no need for more tax deferment this year but would still like to contribute to my retirement. Should I still just put the money in my sep ira or is there a better option?

Seriously?

This is where you ask these kinds of questions?

And you really expect an intelligent answer of value based on that limited bit of information that you provided, rather than having a professional review your complete situation and give you an informed recommendation?

[googwallet]

I have no need for more tax deferment this year but would still like to contribute to my retirement. Should I still just put the money in my sep ira or is there a better option?

If you're looking for free advice, I would post here: https://www.reddit.com/r/personalfinance/

Seriously?

This is where you ask these kinds of questions?

And you really expect an intelligent answer of value based on that limited bit of information that you provided, rather than having a professional review your complete situation and give you an informed recommendation?

Chill 

[ushdadude]

Seriously?

This is where you ask these kinds of questions?

And you really expect an intelligent answer of value based on that limited bit of information that you provided, rather than having a professional review your complete situation and give you an informed recommendation?

I'm basically asking if there are other types of accounts that have tax advantages besides tax deferment. Maybe a roth 401k.
i have met with professionals in the past and every single one tried to sell me an expensive whole life policy

Chill

this

[AsherO]

Medicare eligibility has nothing to do with assets or income.

Say what? Isn't there an entire industry around helping people plan for their application so their assets don't get in the way?