Again, thanks for creating an article that I can wrap my head around!

I make slightly less than $100K per year. I contribute 10% to my 401K plan each year, which also receives a 5% match from my employer.

Many years ago, I left a company and converted my 401K from that firm into a conduit IRA, which I converted to a ROTH IRA last year.

My question is simple. While I’m contributing to my 401K plan with my present employer, can I contribute to my ROTH IRA, too? If so, is there a contribution limit?

Thank you for helping me.

In addition, a child can’t legally hold a Roth IRA. However, they can have a Custodial Roth IRA controlled by you until they reach adulthood. This, however, will be considered their property, so it might effect SSI payments.

Nevertheless, if you have earned income, you can contribute to a Roth IRA and name your children as the beneficiaries. Then, in the event of your death, they’ll inherit the contents of the Roth IRA.

Hope this helps.

Unfortunately, as your emails suggest, some unknown (but probably high) percentage of people are intimidated by the very thought of opening an IRA, so they end up doing nothing. That’s too bad, because few things could be easier.

If those people know enough about computers to email you, then they’re more than capable of setting up an IRA online through a discount broker… in many cases with no fees or minimums. Just fill out the online forms, designate a contribution year, fund the account, and you’re done.

Thanks for raising awareness of this common line of inquiry…

[...] a Roth IRA is one of the smartest moves a young adult can make. These retirement accounts allow your [...]

[...] taxed when I take the money out after I’m 60). Specifically, after reading blog posts like this and being reminded of the awesome power of compound interest, I realized that I very much would [...]

[...] Roth IRA vs. Traditional IRA: Which is the Best Deal?Clearing Up Roth IRA ConfusionDaily Links: Taxes, Batteries, and Frivolous PurchasesQuestions and Answers about Roth IRAsWhat is a Roth IRA and Why Should You Care? [...]

[...] The people over at Get Rich Slowly have a great guide to IRA’s you can read HERE [...]

[...] How an IRA works and how to get one going at Get Rich Slowly. JD at Get Rich Slowly covers the 411 on individual retirement accounts and shows you various options you can try to get going on those crazy fun tax-advantaged accounts. [...]

[...] Experimenting with my IRA — Back then I had tons of ideas. Unfortunately most of my money was in IRA, so I experimented using my retirement money — big mistake! First, money lost in an IRA cannot be replenished. I was allowed to deposit $2,000 per year and that was the limit. Second, I could not claim my losses as tax deductions. Since the IRA was tax-sheltered, the loss was simply a loss. [Learn more about IRAs.] [...]

[...] not going to go into detail about the Roth IRA itself since JD over at Get Rich Slowly has a fabulous blog post about it from days gone by; instead, let’s look at when it needs to be contributed to by and [...]

[...] After reading The Automatic Millionaire a couple years ago, I opened a Roth IRA at Sharebuilder. It was easier than opening a checking account. I managed to make the maximum contribution in 2006, and tomorrow I’ll complete funding for 2007. Don’t understand retirement accounts? No problem. Last June I explained what a Roth IRA is and why you should care. [...]

[...] Experimenting with my IRA — Back then I had tons of ideas. Unfortunately most of my money was in IRA, so I experimented using my retirement money — big mistake! First, money lost in an IRA cannot be replenished. I was allowed to deposit $2,000 per year and that was the limit. Second, I could not claim my losses as tax deductions. Since the IRA was tax-sheltered, the loss was simply a loss. [Learn more about IRAs.] [...]

[...] would argue — and I can’t say they’re wrong — that if you want to start a Roth IRA and can afford it, you should save $1,000 or $3,000 (or whatever the minimum is) to open a no-fee [...]

[...] would argue — and I can’t say they’re wrong — that if you want to start a Roth IRA and can afford it, you should save $1,000 or $3,000 (or whatever the minimum is) to open a no-fee [...]

[...] GRS Introduction to Roth IRAs series Part 0: How compound returns favor the young Part 1: What is a Roth IRA and why should you care? Part 2: How to start a Roth IRA (and where to do it) Part 3: Which investments are best for a Roth [...]

[...] offer a 401k? What if you want to do this on your own? Open an Individual Retirement Account. (We covered IRAs in detail earlier this year.) “Whatever type of retirement account you open, arrange to have your [...]

[...] What is a Roth IRA and why should you care? [...]

[...] Thanks for visiting!Over the past month, I’ve covered the basics of Roth IRAs. I’ve explained what they are, how (and where) to open one, and which investments are best. Today in the final part of this [...]

[...] Roth IRAs [...]

[...] the next best thing. Here’s a great blog post about IRA’s with includes links to more information: What is a Roth IRA and Why Should You Care? ? Get Rich Slowly I hope that helps a bit. Hopefully we can get some smart Yankees in here to answer your question [...]

[...] What is a Roth IRA and Why Should You Care? (Get Rich Slowly) [...]

Money Hack: How To Open Up An IRA For $1 In 15 Minutes…

By Amy L. Fontinelle
Most people have the impression that in order to open a retirement account, you need to do lots of research, have a large sum of money to invest, and have lots of time to set up your account. While this might be true in many cases,…