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Re: mclim post# 186645

Thursday, 04/11/2019 12:49:17 PM

Thursday, April 11, 2019 12:49:17 PM

Post# of 428910
It would take you ~15-20 yrs to contribute $100K to a ROTH - annual limit is $5.5k if you're under 50 (went up to $6k for 2019), $6500 if older, and that's if your Modified adjusted gross income (MAGI) is < $120k (single) or < $189k (married filing jointly) - MAGI > $135k/$199k disqualifies you from contributing any money to a ROTH. But assume you contributed $10k and the account and it's now worth $1M - you can only pull out the original $10k if you're < 59.5 yrs old w/o penalty - if you withdraw earnings early, you pay taxes plus a 10% penalty. ROTH is a great deal if you can afford to contribute, but it's by no means perfect, and it's totally useless if you're in a high cost area and get paid commensurate with the local cost of living.

The Thought Police: To censor and protect. Craig Bruce

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