My Account
Sign up, and you can make all message times appear in your timezone.
Sign up
Report problem with this ad
Start a related thread
Start a related poll
Reply via Boardmail
Jan 20, 2023
10:47
:25
am
Skeptical Optimist
Intervention Needed
It's insane that there is an income limit to begin with on a Roth
Start a related thread
Start a related poll
Reply via Boardmail
Report problem with this ad
Skeptical Optimist
Previous username
workindev
Bio page
Skeptical Optimist
Joined
Aug 2, 2006
Last login
May 6, 2024
Total posts
79,072 (4,240 FO)
Report problem with this ad
Messages
Author
Time
Is a Roth IRA a good idea for an emergency savings? I understand you can pull
RGGeemer
1/20/23 10:36am
They need to raise the income limit for a Roth
cheezedawg
1/20/23 10:38am
It's insane that there is an income limit to begin with on a Roth
Skeptical Optimist
1/20/23 10:47am
isn't the limit kind of useless? Anyone can get money into roth.
SalmonOfCapistrano
1/20/23 10:53am
Never been a problem for me
supertux
1/20/23 10:55am
If only they raised it as fast as they are raising the social security limit
cougaman
1/20/23 11:24am
It's stupid that the married limit is way less than double what it is for
JuicyJam
1/20/23 11:27am
That is odd
RGGeemer
1/20/23 11:28am
Even Roth IRAs have a 10% early withdrawal penalty
Bainge
1/20/23 10:38am
Not on contributions, right? Just on earnings?
RGGeemer
1/20/23 10:38am
you should be able to withdraw contributions without penalty
LeonMarek
1/20/23 10:39am
<< Deleted >>
Bainge
1/20/23 10:40am
Don't think that's true.
RGGeemer
1/20/23 10:41am
Yeah I am getting mixed answers so I deleted it
Bainge
1/20/23 10:42am
False. Doesn't apply to contributions.
supertux
1/20/23 10:43am
Correct, I have taken funds out w/o penalty
PortlandCoug
1/20/23 10:51am
No. Roth's have a 10% early withdrawal penalty unless held 5 years or taken
JAGA97
1/20/23 10:38am
Not true. You can pull contributions at any time.
VenturaCoug
1/20/23 10:39am
RE: No. Roth's have a 10% early withdrawal penalty unless held 5 years or taken
RGGeemer
1/20/23 10:41am
Yes, it’s a good idea, but you may be forced to pull from depressed investments.
VenturaCoug
1/20/23 10:38am
Yeah this is the real issue. Good chances you need those funds when the market is down.
supertux
1/20/23 10:40am
So is a 1% savings account a better idea than a Roth IRA for emergency savings?
RGGeemer
1/20/23 10:42am
No, but 4% might be. It just depends.
supertux
1/20/23 10:44am
But you can put it into a Roth at vanguard and get 4% in vanguard federal money market. Best of both worlds. Maybe keep
supertux
1/20/23 10:44am
That sounds good. My Roth IRA is with fidelity, is there an equivalent MM there?
RGGeemer
1/20/23 10:46am
Sure
supertux
1/20/23 10:48am
I think the way to look at it is the Roth maybe justifies a slightly smaller
VenturaCoug
1/20/23 10:45am
Bask bank is a good one
supertux
1/20/23 10:46am
But yeah I would keep some in savings and excess in Roth. Want to minimize the chances of needing to use the Roth.
supertux
1/20/23 10:50am
I pulled a small amount last year to cover some grad school expenses literally
LeonMarek
1/20/23 10:53am
Sure. Why not? Just make sure you keep proof of contributions and keep track of any withdrawals you make.
supertux
1/20/23 10:39am
My understanding is that you can pull out the contributions without penalty but
PokeMAN
1/20/23 10:41am
Can use HSA too. Build up your hsa and save receipts, but this has the same
VenturaCoug
1/20/23 10:41am
At a minimum, you can put in contributions and keep in cash
Cougforgood
1/20/23 10:44am
Yep or some decent money market funds right now. Vanguards federal one is like 4%
supertux
1/20/23 10:46am
I keep my pure EMERGENCY 6 months savings in an online HY Savings account
The Dark Knight
1/20/23 10:49am
Didn't realize savings account interest rates were so high. That makes more
RGGeemer
1/20/23 10:51am
What online HY Company are you using?
PokeMAN
1/20/23 10:53am
Discover
The Dark Knight
1/20/23 10:58am
Report problem with this ad
Posting on CougarBoard
In order to post, you will need to either
sign up
or
log in
.
Report problem with this ad
