Kings over Queens
Recycles dryer sheets
- Joined
- Apr 16, 2023
- Messages
- 434
I fund a Roth 401k through work to capture the corporate 3% match and I'm thinking of opening separate accounts for me and my wife. I currently contribute $6,500.
I could increase contributions from pay, but figure, I've got $25,000 sitting in my stock market account sitting SWVXX. Since I've already paid tax on that money, it's the same as net pay, right?
If I move $15,000 new his and her roth IRA's, the earnings are tax free, as opposed to taxable if I leave it in the stock market account. As far as liquidity, we don't need the money right away, but if I did, I can get the contribution back, just not the earnings. We're 56 so I'd have to wait 5 years to avoid penalty if I wanted the earnings. It's almost like locking in a cd.
Seems like an easy decision, yes?
I could increase contributions from pay, but figure, I've got $25,000 sitting in my stock market account sitting SWVXX. Since I've already paid tax on that money, it's the same as net pay, right?
If I move $15,000 new his and her roth IRA's, the earnings are tax free, as opposed to taxable if I leave it in the stock market account. As far as liquidity, we don't need the money right away, but if I did, I can get the contribution back, just not the earnings. We're 56 so I'd have to wait 5 years to avoid penalty if I wanted the earnings. It's almost like locking in a cd.
Seems like an easy decision, yes?