How to open a Roth IRA

How to open a Roth IRA

You've heard how awesome Roth IRAs are and how starting one now can mean big bucks when you're older. You've even done some research so you have a vague idea of how a Roth IRA works. Now what? How do you actually open a Roth IRA for yourself?

The good news is that it's surprisingly easy to set up a retirement account and begin investing in your future. Here's what to do…

How to open a Roth IRA


  1. Decide where to open your Roth IRA account. Financial services providers such as Vanguard or Fidelity will have IRA products.
  2. Gather your information.
  3. Transfer money into your account.
  4. Set up an automatic investment plan.

1. Where to Open a Roth IRA

One of the reasons people fret about opening a Roth IRA is because there are so many financial institutions offering IRA products. It's important to search for a company that suits your needs, but how do you evaluate each company's strengths and weaknesses?

Consider reputable Advice

If you already have an investment advisor, ask her for recommendations, but look at other options too. Some banks and credit unions also offer individual retirement accounts. My credit union, for example, has Roth accounts but they're limited to certificates of deposit at 1.50%.

2. Gather Your Information

Gather all your information in one location when you are ready to begin. Most firms provide online applications, but some still require that you download forms and mail or fax them to the company. (If you're opening an IRA through a brick-and-mortar bank or broker, take this information with you.)

From this point, it's just a matter of answering simple questions. The entire process should take about an hour of uninterrupted time. (Actually, you'll probably only need 15 minutes, but allocate more time just to be safe.) Before you begin the application, make sure you have all the documents listed below:

Here's What You Need to Open an Account


  • Your social security number.
  • Your driver's license or other photo I.D. like a passport.
  • Your bank account information — your bank's routing number and your bank account number.
  • Your employment information — your employer's name and address.
  • Some money. (Depending on where you choose to open your IRA, you may need $25 or as much as $3,000.)

Note: For each beneficiary you choose, you will need to supply their name, social security number, and date of birth as well.


3. Transfer Money Into Your Account

Once you've completed the application process, you will be asked to transfer money to your account. This money will probably earn interest in a money market fund until you choose an investment. [In Part 4 of this series, we'll discuss good investment options for Roth IRAs.]

4. Set Up an Automatic Investment Plan.

I'm a big fan of automatic investment plans. Most of the companies mentioned later in this article offer some sort of program that will pull money from your bank account every month to invest in the stocks or mutual funds you designate. By setting aside $50 or $100 or $500 in this way, saving becomes a habit. You don't notice the money is missing. It's a regular expense that just becomes incorporated into your budget.

A final note: Opening a new account usually is quick and simple. However, be aware that it may take a few weeks before you can start trading. That's because they will wait for checks you send to properly clear the bank.

Ongoing IRA account transactions at banks, brokerages or mutual fund families happen quickly, but they all take some time to activate a new account. In other words, don't become impatient if you can't buy things right away.

Related >> IRA Contribution Limits, Deadlines and Deductions

Before You Invest

There are two things you should take care of before opening a Roth IRA:

  1. Tuck away at least $1,000 in a savings account for emergencies.
  2. Pay off your credit card debt. At the very least, make a significant dent in your debt and have a plan for its elimination. (I chronicled my choice between debt and savings here.)

Related >> Which online high-yield savings account & money market is best?

Related >> Real-life choices: Retirement savings vs. debt reduction

 

An Excellent Way to Begin Your Retirement Savings


    When you've finished paying off your debt, take the amount you were using for debt reduction each month and, instead of spending it, stick it into a retirement account.

You've already developed the habit of using the money to improve your financial life. This is just another way to do it!

Consider Taking a More Active Role

If you're willing to make some decisions on your own, you can open a self-directed IRA through a mutual fund company or through an online discount brokerage.

In general, you have two choices:

  1. A mutual fund family, like Vanguard or Fidelity, which will open an IRA account for free and sell you their funds for free. The benefit is that you pay no commissions, but the downside is you can only buy the funds they sell.
  2. A brokerage, which allows you to pick any index fund, managed mutual fund, or individual stocks and/or bonds but may charge a commission on each trade. The major online brokerages (E-Trade, TD Ameritrade, etc.) usually have no fees to open an IRA but will charge around $10 or less per transaction for most transactions.

How to Evaluate a Roth IRA provider


  • Is there a minimum initial investment?
  • Does the company offer automatic contributions?
  • Are there minimum contributions?
  • What types of fees are assessed to the account?
  • What investment options are available — stocks? mutual funds? real estate?
  • Is it possible to download statements automatically to your money management program?
  • How reputable is the provider?

Mutual Fund Family

If you decide to go with a mutual fund family, many people recommend starting at one of the big three Vanguard, Fidelity, or T. Rowe Price because of the large variety of managed and indexed funds they offer. If mutual funds (indexed or managed) are the cornerstone of your investment strategy, it makes the most sense to go with one of the major fund families.

For those focusing on index funds, Vanguard is the most logical choice, because they specialize in index funds and offer the widest variety. They actually created index funds to begin with, and their costs tend to be the lowest.
Click here to open a Roth IRA at Vanguard.

For those who prefer managed mutual funds over index funds, your best approach is to go to a review site like Morningstar or Zacks to see which of the funds that pursue what you have in mind (e.g., foreign stocks, domestic bonds, etc.) perform the best.
Click here to open a Roth IRA with Fidelity.

All the major mutual fund families make it easy to open no-cost accounts. Simply go to their website and follow their instructions. But there are still other places that you can open a Roth IRA.

Click here to open an IRA at T. Rowe Price.

Discount Brokers

Discount brokers appeal to many people because they have a low barrier to entry. They offer lower fees than traditional brokers because they don't have research departments and they don't offer investment advice. They act purely as middlemen for trading in the market.

The primary benefit of using a broker is that you can pick from many different mutual funds or, if you prefer, individual stocks or bonds.

How to Bridge a Gap


Discount brokers are a good option if you are short on cash. Most of them will also offer a cash account, similar to a savings account. You can use that account to accumulate the money necessary to meet the minimum initial deposit.

Online discount brokers want your IRA business and, consequently, they make it very easy to open an account. You can compare their fine print details, but for the most part, their pricing is very similar.

The major players in the discount brokerage space are E-Trade, Scottrade, and TD Ameritrade. Simply visit their home page and look for the link offering a no-cost IRA account. Some have minimum deposits of $500 or so; but if you commit to a monthly automated contribution, many will waive that requirement.

Don't Delay Because of These Misconceptions

I always believed opening a retirement account was difficult, but that's all there is to it really. The most difficult part is deciding where to open your account. Set aside an hour or two some Saturday morning to explore your options over a cup of coffee. With some research, you should be able to find a company and program that fits your place in life.

I also used to think, I don't have money to invest. Last year I forced myself to find the time and the cash to open a Roth IRA, and I can say that it has been one of the best financial decisions I've ever made.

The GRS Introduction to Roth IRA Series

Understanding how important it is to get started saving for retirement, check out the rest of our Roth IRA series to learn about how to start your Roth IRA, which investments are best, and other general questions about these great accounts.

Part 1: The extraordinary power of compound interest
Part 2: What is a Roth IRA and why should you care?
Part 3: How to open a Roth IRA (and where to do it)
Part 4: Which investments are best for a Roth IRA?
Part 5: Questions and answers about Roth IRAs

More about...Investing, Retirement

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bornbad
bornbad

I was recently looking at the Fidelity Roth IRA. I wanted to waive the initial minimum deposit, but was wondering if the $200/month is constant. In other words, do you have to commit to that amount every month? If so, it seems better to just wait until you have the minimum required and then control how much you want to put in each month. I wanted to open one for both my wife and myself, so $400 total is a bit much (on top of our other savings, 401ks, bills, etc.) to be locked into for life just to avoid… Read more »

Jeff Coga
Jeff Coga

Make sure to look into using self directed ROTH IRA funding real estate transactions. You can explode your account with the right strategies – leveraging real estate. Example…

1. Buy, fix, and sell it for profit
2. Buy, fix, and rent them out and hold it
3. Lend money to developers who do #1 and 2

Jeff Coga

David Foster
David Foster

How do you find a good company to do the self directed Roth IRA? I like to deal with real estate, tax liens & tax deeds. Thanks

Chris
Chris

Well, no you don’t have to put in $200 on a set schedule. As a matter of fact, if you contact almost ALL of the brokerage/retirement account holders such as Fidelity and Schwab, you’ll find that you can open an account with only $5 or $10.
You may not be able to invest in specific funds right away, but you can put however much you can afford to in the account.
I did this recently with my own brokerage account, and so did a nephew of mine.

MoneyChangesThings
MoneyChangesThings

My father, a regular working guy who financed a 25-year retirement and left an estate gave this advice: always fund your retirement to the max, even if you have to borrow to do so. Of course he didn’t envision folks carrying the kind of credit card debt that is now common. I still think that it’s valid if you’re flush but have no cash flow to borrow $ for the IRA, provided you are disciplined about paying the debt off. If you have family members with no money, you might be able to borrow from them – that would perhaps… Read more »

Rachel
Rachel

This is exactly the information I have been looking for! Thanks!

MoneyChangesThings
MoneyChangesThings

Sorry, I meant “family members WITH money”. I am a big advocate of parents helping their young adult kids by funding, or at least supplementing, their Roth IRAs, since it rewards work.

Rafael
Rafael

Frist of all:Congrats on your excellent blog! I loved reading the archives.
I have kind of a dumb question:all this reading about IRAs and stuff has made me want to look in to saving and investing for the future.The problem is I am not in the U.S. I do have a bank account with a U.S bank though. Can I still start a Roth IRA?
I cannot save in my country´s currency simply because inflation will eat the whole thing so most of the money I make I try to save it in US dollars.
Thanks!

EJW
EJW

I have a Roth IRA (as well as some taxable accounts) through T. Rowe Price and we set them up online. It was a couple years ago, before their big website re-design, but I’m sure they didn’t eliminate that functionality.

Sam
Sam

I’d add another question when doing this type of investment research. Is the plan open or closed, meaning can you buy any product or are you limited to the company’s products. For example, if you went with Vanguard for your Roth IRA you might have non-Vangaurd products you are interested in and some companies limit you to their products.

Good stuff JD!

English Major
English Major

Hey, J.D., I think this is a great couple of articles–if you were interested in adding the particulars of the Vanguard account-opening process, I did a walkthrough here from when I opened my own Roth there.

Daniel
Daniel

JR,

Great article. Just a couple of point about Firstrade. They do now offer online signup with their ROTH IRA. You have to fax in a couple of forms signed, but i think this is the case with most places. When I signed up they only required a $50 min deposit.

Once again great article, I will definitely bookmark it and send it out as a reference for my family and friends looking to get started.

Jared Teems
Jared Teems

I use sharebuider for my all Investment accounts right now. The fees look high, but if you upgrade your plan to advantage ($20/month) your IRA fees are waved and you get 20 trades/month (and each additional trade is just a $1).The fees for real time drops to just $11.95 (all sells are real-time for some reason).

I chose sharebuilder because I can use limited amounts of money (hey, i’m 18 and on minimum wage so that amounts to about $10/week of available cash) and buy fractional shares of almost any stock or ETF.

A Tentative Personal Finance Blog
A Tentative Personal Finance Blog

I have my Roth IRA at T. Rowe Price. I had no problems doing everything online. I never had to fill out any forms and what not.

Covert7
Covert7

I’ve got a question here for you sharp folks. 🙂 My wife and I just had our first child a couple of weeks ago so now we’re interested in putting some money aside for college. We’ve decided to not do things like 529’s or other eduction only options but instead just invest the money straight up. Here’s my question: When considering long term savings goals should we setup totally seperate investment accounts or lump them together to maximize money growth? For example, say we go with Vanguard. Should I setup an account just for College and then another account just… Read more »

J.D.
J.D.

You T. Rowe Price people have me back digging through the site. If I find an electronic-only way to open a Roth IRA, I’ll amend this entry. I’ve added info for applying online at T. Rowe Price.

Trent
Trent

One quick thing: I would STRONGLY recommend that you have more than $1,000 in an emergency fund before starting a Roth IRA, ESPECIALLY if you have children. If you have only $1,000 in an emergency fund, Murphy’s Law dictates that the day you fund a Roth IRA will be the day that your car dies and your hot water heater blows up. We have more than $10K in our emergency fund right now and we still don’t think it’s enough (one child, another one on the way) – we are shooting for $30-40K at this point.

Shaun
Shaun

I thought you could pull the original money out of the Roth whenever you wanted tax free (since technically you’ve already been taxed on that money). I thought that was like the big benefit of the Roth. So if that’s the case doesn’t this just make a Roth a really awesome savings account?

Matt
Matt

No…you still have to pay the 10% early withdrawal penalty

Josh
Josh

Thats not true. As long as your Roth IRA has been open for 5 years you can withdraw your contributions penalty free. The 10% penalty applies when you try to withdraw your contributions before your account is 5 years old or you try and withdraw earnings before 59 1/2.

plonkee
plonkee

Rafael: I think that you need at the very least US earnings to open a Roth IRA.

You can usually invest in dollar denominated funds in countries outside the US. You certainly can from the UK. Its reasonably likely that they will be more expensive than investing in the US, and investing in your local currency, partly due to economies of scale.

J.D.
J.D.

@Trent I think this is one of those philosophical differences where each person is going to have to choose what’s right for them. I’m carrying $1,000 emergency fund, paying down my debt, and investing in my IRA. I haven’t run into any problems yet, though I know there is a risk that I might. When my debt is eliminated (still on target for 25 March 2008), I will boost my emergency fund to $5,000, which is where I’ll let it sit. But then I don’t have any kids and my wife and I have a joint $5,000 emergency fund for… Read more »

SJean
SJean

I use Fidelity, mainly because my work 401k is also through them. This is exactly the kind of step by step info I could have used in january! I sort of just winged it, but thus far it has been okay.

Brian at babybiotechs.com
Brian at babybiotechs.com

I’m a little scared to move my IRA to Zecco since I doubt their business model will work. The hassles of changing brokers when they collapse or raise fees just isn’t worth it.

Covert7
Covert7

@ Trent

I guess it just depends on how risk averse you are and your life circumstances. I tend to be more risk averse so I like having a good cash cushion in a high yield savings account. $20k right now. But for other’s I’m sure less is fine. $1000 though sounds really low but if you’ve got some other asset you could liquidate quickly I could see investing the rest.

So many options… 🙂

James
James

One thing that I think is being overlooked…I’m almost positive you can have more than one Roth ACCOUNT as long as the sum of all accounts falls under the total limit.

Thus, you could use Zecco for buying stocks for your Roth, but if you really liked Vanguard mutual funds (and for some reason wanted to go with those instead of ETFs), then you could have another Roth account at Vanguard.

Hopefully someone can confirm (or deny) this…But as I said, I’m almost positive this is the case.

shy
shy

You can have multiple Roth IRA’s – I know because I’ve done it. Cashed them in for a house downpayment.

WFU
WFU

I’m at T.Rowe Price as well. For their Index funds you must pay $10/year unless the balance is $10k or greater.

lifewithmikey
lifewithmikey

Great article even for someone still learning themself. I’ve noticed a lot of posts to do with IRA lately. You can never post enough. Keep it up!

Cap
Cap

James nailed it a bit there (w/ shy confirming). Utilize different Roth accounts to trade according to how you feel. E.g., certain brokerages don’t have access to all the funds, ETFs, or individual stock.

but for many people, sticking w/ one brokerage like vanguard and buying a no-load, low fee and low expense fund will be fairly ideal.

tinyhands
tinyhands

@Covert7 Re: Multiple accounts– Like so many things, it depends. If you’re leaving your contributions in cash, you’re more likely to find that your brokerage has multiple tiers of interest rates on aggegrated funds, in which case one big pile is going to yield a higher return. If you’re investing your contributions, they’re going to grow (or shrink) at the same rate regardless, so the only difference is whether there is a tax-advantaged account in which the investments are better held. I have to make some assumptions on how much you’re able to save, but it sounds to me like… Read more »

Joanne
Joanne

It should be noted that there are income limits for making Roth contributions–$95k single and $150k married filing jointly. If your adjusted gross income exceeds those amounts, you may not be able to contribute the full amount or at all to a Roth.

See the details here:

http://tinyurl.com/2jw8ab

Covert7
Covert7

@ Tinyhands

Thanks for that info Tinyhands. I see what you’re saying here and I think my further questions on the matter are probably better suited to the Forums rather than taking up more space on this post.

Thanks for the help!

Richard
Richard

anyone have any opinions or used Charles Schwab for their Roth or IRA’s in general?

Moneymonk
Moneymonk

I noticed you said Pay off credit card debt. Should one pay off credit card debt or do you mean all debt (car, student loans, etc)?

Rance
Rance

Here is something to consider: Have a Roth, a 401(k), and additional investments, and you want to diversify, which investments should go into the Roth? It would seem to me that the investments which generate income that is taxed at the highest rate should go into the Roth since then that income will never be taxed.

Opinions?

outbackvandy
outbackvandy

@Moneymonk, You should pay off high APR debt. Assume your ROTH will earn an average 8% APY in the long term, any debt with interest higher than 8% should be paid off before investing in ROTH, any debt with interest lower than 8% such as student loans and so on can wait.

adam
adam

Can I open up more then 1 Roth IRA, say one at ING and another at T Row Price?

Dave
Dave

re: Sharebuilder I’ve got a Roth account with them and am happy with it, but I find their Gain & Loss reports to be misleading at best. Let me give an example, using nice, round, purely hypothetical numbers: At the beginning of the year, I buy $100 of stock YYY, paying a commision of $15 (total cost = $115, value of stock = $100) At this point, the gain/loss report will show a loss of $15. At the end of the year, the stock is still worth $100, but I got dividends of $5/quarter which I had automatically reinvested (nice… Read more »

Ed at Rxforfinance
Ed at Rxforfinance

I did have to mail in a Roth IRA application to T. Rowe Price when I opened my sons account, but he was/is a minor 😉

J.D.
J.D.

Just a reminder, folks: I’ll be collating your questions on the first three parts of the Roth IRA series, and then doing my best to find answers for them. If you don’t get an answer in this thread, check Get Rich Slowly later next week to see if I’ve managed to find anything out for you…

Waylon
Waylon

It should also be noted that yearly maximums for Roth IRA’s are limited to $4,000 for the 2007 tax year and previous years, and will be limited to $5,000 for the 2008 tax year.

This is a good thing to know so that you can have the option of setting up fund transfers (either as a net or percentage from your paycheck, a bank account, etc.) at $333.33 per month for 2007, and $416.66 for 2008, you’ll be sure to hit the maximum by the end of the year.

James
James

Income and contribution limits were brought up in previous parts of the article.

To Rance:
I believe you are correct, given that gains are (currently) untaxed in a Roth, it would stand to reason that one might consolidate both their tax-disadvantaged investments as well as any shorter-term/riskier investments that they hope will do quite well. In this way, you should be minimizing taxation.

Kaila
Kaila

I’m really surprised nobody has mentioned Scottrade yet. (Unless Scottrade is an established loser?) I opened a Roth IRA with them in January. They only required a $500 minimum initial investment, and I haven’t paid any fees so far. If you buy into one of their approved no-load, no-fee mutual funds, the transaction is free. And they have tons of funds to choose from. Downsides are you can’t electronically transfer my money in, and if you don’t buy a no-load, no-fee fund, the transaction fee is something like $34. But I use the online bill pay feature at my bank… Read more »

Ryan
Ryan

Re: Emergency fund first: You can take out the amount invested from your ROTH without a penalty, for any reason, right? (I know you can take out like $10k for a house, but I’m pretty sure you can extract your cash deposits too…) If this is so, is there any reason someone like JD (who wants to do a ROTH *now* before building up a Trent-size emergency fund) couldn’t use this as an extended emergency fund if his initial fund runs dry? If you can do this, then it seems like the ROTH vs emergency fund doesn’t have much weight… Read more »

adam
adam

Ryan, You can take $10,000 out to buy your first house with no penalties, or to continue your education. If you’re under 59 1/2 you’ll pay a penalty (up to 10% I think) for any other uses. The advantage of a Roth over a Traditional IRA is that you’ve already paid taxes on the money you’re putting in, and anything you earn in a Roth won’t be taxed, but if you pull it out before 59 1/2 you’ll be penalized (10%) and the penalty is the same for a Traditional IRA. With a Traditional IRA you take pre tax dollars… Read more »

Josh
Josh

While your example is correct its a little misleading. You are 100% correct if you are pulling out “ALL” of your money in one lump sum. However most people and financial advisers suggest not doing that and the general rule of thumb is to take out 4% per year. Taking out 4% of $41,274 is about $1,650 a year which would qualify you for the 10% tax bracket. So if you were truly using this like a normal account, it would make more sense in this particular example to invest pre-tax instead of putting it in a ROTH.

adam
adam

To correct an error, I meant “Tax bracket” instead of “tax margin”

Waylon
Waylon

@ Ryan:

You are correct about the house withdrawal, but that’s it:

-Earnings withdrawals become automatically qualified in the tax year the participant reaches age 59.5 or becomes disabled, so long as the account is “seasoned” (established for five or more years).

-Up to $10,000 in earnings withdrawals are considered qualified if the money is used to acquire a principal residence. This house must be acquired by the Roth IRA owner, their spouse, or their lineal ancestors and descendants. The owner or qualified relative who receives the “first time homeowner” distribution must not have owned a home in the previous 24 months.

Via http://en.wikipedia.org/wiki/Roth_IRA

DB
DB

JD:

Sorry I didn’t get you the information you asked for — I’ve been keeping crazy-long hours.

BTW, I too set up everything for TRowe Price online and it was as smooth as butter. Their online interface to manage the account is nice too — I can automatically change my contributions, open other accounts, etc.

DB

J.D.
J.D.

Ryan, Adam, Waylon —

It is my understanding that at any time, an account holder can withdraw up to the total of his contribution from a Roth IRA with no penalty. In other words, Ryan’s suggestion that a Roth IRA might be used as an emergency fund does hold true. Now I may be wrong on this, but I don’t think that I am. I’ll get verfication this evening.

itak
itak

This is not exactly true. I have put 5500 in a roth IRA 5 years ago at Fidelity. Fidelity did not actually put it in a roth IRA so it did not get any interest, even though I did it automatically via Fidelity to go to a classic Roth IRA. Now i just looked at that account and saw Fidelity has just let my money sit in their account, with no warning, nothing, calling it a Roth IRA…but with no interest for me. I asked then to withdraw the money since it does not gain any interest. They tell me… Read more »

Leslie
Leslie

If you are going to choose mutual funds for your IRA’s, don’t forget to take into account the expense ratios for the funds. Some companies considerably higher ratios than others. Vanguard has a good expense ratio calculator on their site to compare funds btw companies.

James Kew
James Kew

JD — that’s my understanding too. The argument *against* using a Roth as an emergency fund is that once you’ve withdrawn funds from a Roth, you *can’t* put them back. The risk is that if you tap your Roth, you make a permanent hole in your retirement savings. And emergency funds do have a habit of occasionally being needed… Also consider that you really need your emergency fund to be relatively stable; while a retirement fund, with its very long timescale, can take more risk and so have more volatility. What if you need your emergency fund in the middle… Read more »

Rex
Rex

Excellent Site. My father in law recently passed away at the age of 52 from a Brain Tumor (hope you never have to deal with one of those in your life!) and my mother in law is pretty uneducated in finances. I’ve been helping her roll over his 401k into an IRA and appreciate your posts on various companies.

I’m making some $ through online surveys these days after a few hours on the computer and am planning on taking those earnings and place them into an IRA as well, thanks to your advice!

http://deathtodebt.blogspot.com

-Rex

SecularSage
SecularSage

Does anyone know if it’s possible to roll a 401k into a Roth IRA?

Cedric
Cedric

I was just looking into this the other day, having $1,000 in a traditional IRA from an early-on and short-lived job. Looks like to transfer it into a Roth, the amount will get added to your income for taxes and you’ll have to pay the income taxes on it. I believe you can also spread that tax burden over the next 2 years (like $500 added to my 2016 income, $500 to 2017)

daniel
daniel

Covert7 — One technique you can use for financing college is to save that money in your (and spouse’s) Roth IRAs. The contributions can be withdrawn without penalty, and the growth will still be there for retirement. Of course, if you can afford to save more than $4000/yr/person, you’ll need to look at other investment vehicles. Be sure to compare your state’s 529 plan with the Coverdell ESA (formerly Education IRA). My understanding of college financial aid is that they take everything in the student’s name, but only a part of what’s in the parents’ names. As far as Roth… Read more »

Driver8
Driver8

Hello, just found this site thru a link from LifeHacker. I’d say the article is very through and well-written, but I have some serious concerns about some of the statements and implicit assumptions in the comments. Please forgive me for some of the harsh comments below. Here are my thoughts: 1. Roth IRA v. Traditional (deductible) IRA v. 401(k). I didn’t see anyone mention this, but one of the best retirement savings vehicles in the 401(k) (or 403(b)), if your employer sponsors one. The advantages of contributing to a 401(k) is the higher limit ($15,000/yr v. $4,000/yr), and most employers… Read more »

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