IRA Rollover

Posts Tagged ‘401k Rollover’

Question: What is the point behind setting a $5,000 IRA contribution limit per year in the first place?

Especially with a Roth IRA… If I have already paid my taxes on that money, what does it matter if I put $5,000 or $15,000 into my own retirement account each year? Why would the IRS set such a limit? What if I can responsibly afford to meet my $5,000 limit each year with 2 or 3 months to spare? Now I have to just sideline that money or put it to work in a taxable account for the rest of that year. What about having a rollover option for any unused portions of the $5,000 limit each year, instead of the current “use or lose” setup. Surely, somebody else can agree with this.

Answer: Granted, your Roth contributions are post-tax, but that means that Uncle Sam loses the taxes on your growth. Do you expect Congress to understand that responsible saving is more beneficial to our economy than greater taxation?

IRA # 1 IRA Basics