Extra Money

[choices1945]

Early Retirement has suddenly been forced upon me. Fortunately, I'll be 62 next month. I'm getting some extra cash when I leave work that I don't really need. I don't know a lot about 401Ks and IRAs so I'd like to ask you experts if I can do this. Can I put $8000 into my 401K (which would take me up to my max allowed). Then roll it over to an IRA and immediately put $6000 into the IRA which I guess is the max. Then put $6000 into my wife's 403B. ?

 

[MasterBlaster]

Extra Money - What's that ?

Most of the 401k plans that I have seen allow you to take a percentage of your salary and deposit into the plan. The plans that I have seen do not allow a lump sum deposit into the 401k account.

Having said that, if you have a 401k balance, then yes that amount can be rolled over into an IRA account. Those accounts are called, of all things, rollover IRA accounts.

If in 2007 you have earned income then you can invest up to $5000 ($4000 for those under 50 years old) into an IRA account. However there are income limits on how much can be invested into tax-deferred IRA's and different limits for for ROTH IRA's. You always have the option to do a non-deductible IRA.

You can also contribute the same amount for your working or non-working spouse although again there are income limit tests for deductible and ROTH IRA's.

One rule that you need to know though, is that your income for the year must be at least as great as the IRA and 401k contributions.

Per the wife's 203b account, I can't help you there as I am not too familiar with them

 

[d]

Extra Money - What's that ?

i don't know, but that's what my kids were always asking me for. i would always respond that there's no such thing.

 

[maddythebeagle]

If you still have some extra money...you can paypal a little to masterblaster for the response...seriously, why dont you just google the answer on how these savings plans work...

 

[MasterBlaster]

If you still have some extra money...you can paypal a little to masterblaster for the response

What a great idea !

The OP could send money, or better yet everyone who reads this thread could send money. Now were talking !

So lets see, when I last looked 168 people had viewed this thread. So if all of those people sent me $1 I'd have $168. That's not too bad. But even better if they all sent me $10. That would give me $1680. Now if they all sent me $10,000 then I'd have $1.68 million and I could live well.

Maybe then I'd even consider early (or earlier) retirement.

Maddy, I'm going to put you on commission

 

[d]

i'll wager you don't get any donations -- because there ain't no such thing as "extra" money, so no one has any to send. but, in case i'm wrong about that, you could send me 20% of what they send you just to prove me wrong.

 

[SecondCor521]

Early Retirement has suddenly been forced upon me. Fortunately, I'll be 62 next month. I'm getting some extra cash when I leave work that I don't really need. I don't know a lot about 401Ks and IRAs so I'd like to ask you experts if I can do this. Can I put $8000 into my 401K (which would take me up to my max allowed). Then roll it over to an IRA and immediately put $6000 into the IRA which I guess is the max. Then put $6000 into my wife's 403B. ?

At a few companies I have worked for, one could defer up to 100% of their income into their 401(k) account. Check with your HR department if they'll let you do that. It may be too late, though; usually there's a bit of a lag between turning in the change form and getting the contribution level changed.

2Cor521