Quick Roth IRA question

"AestheticsInMotion" (aestheticsinmotion) 01/22/2020 at 22:03 • Filed to: None

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After chatting with some of you a few weeks ago, I decided to go with the Roth IRA as it seemed to be the best option for my goals.

After linking a checking account and beginning the process to fund the account, I was asked if I wanted my “ contribution year” to be 2019, 2020, or 2021.

As somebody who is decades away from retirement, not making/spending enough to worry about deductions , and new to retirement accounts in general, am I correct in thinking that the year I choose is only important in that it will allow me to fund the IRA account quicker? Like, I can contribute now and mark it as a 2019 contribution up to the $6000 limit , and then once I reach that cap I can put in another $6000 for the current year?

Am I missing or overthinking something? 

Bronco for your time. Unfortunately no price. Not even a phone number. Me thinks the seller MAY not be super motivated. Can’t blame them, the truck is gorgeous.

Eric @ opposite-lock.com > AestheticsInMotion 01/22/2020 at 22:08

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Yes. Definitely mark it for 2019 to maximize what you are able to contribute even if you can’t max it out both years.

You have until tax day to get it in, but you need to declare it on your taxes for 2019 , even if it hasn’t been transferred/ deposited yet.

Excellent choice, btw.

facw > AestheticsInMotion 01/22/2020 at 22:13

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You want 2019. That way you can still contribute to your 2020 later. If you put in your 2020, that’s all you can do until next year (or maybe you could do 2021, didn’t think that was an option) . But it’s strictly better to max the previous year’s fund first.

WilliamsSW > AestheticsInMotion 01/22/2020 at 22:14

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Yeah what Eric said. Make it for 2019, you have until April 15 for 2019 . You get any tax benefit earlier and it leaves you the chance to add 6k more for 2020.

SBA Thanks You For All The Fish > AestheticsInMotion 01/22/2020 at 22:16

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Yep, you can “mark it back to 2019", which you’ll never be able to do again.
If you can fully fund it for 2020, as you are able, then by all means do so.

But, don’t squander the chance to go “all in” on 2019.

There ARE limits, based on income and sources, so be sure your math is right if you might have a limit below the maximum annual contribution.

fintail > AestheticsInMotion 01/22/2020 at 22:19

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Retirement? lol

There is a quite nice looking Bronco II on Marketplace right now, and not a horrible price either:

https://www.facebook.com/marketplace/item/840076849772027

someassemblyrequired > AestheticsInMotion 01/22/2020 at 22:33

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Contribute to 2019 until tax day (or until you hit the max) then to 2020.

dogisbadob > AestheticsInMotion 01/22/2020 at 22:33

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ooo orange

( everybody else already covered your real question)

AestheticsInMotion > fintail 01/22/2020 at 22:35

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Huh. For some reason I was thinking the market on these had gone all “classic Porsche”. That price says otherwise...

What do you think of this? I’m in love with that profile. I’ve looked on Craigslist and haven’t found any examples that look anywhere near as nice.

AddictedToM3s - Drives a GC > AestheticsInMotion 01/22/2020 at 22:36

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100% what Eric said. One other thing (not sure on your marital status) depending on if you’re single or married the contribution math will change so make sure you double check that.

AestheticsInMotion > Eric @ opposite-lock.com 01/22/2020 at 22:36

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As always, thanks for the help! 

AestheticsInMotion > dogisbadob 01/22/2020 at 22:37

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I'm a sucker for orange. When Mazda released the limited orange ND Miata.... Ohhhhhhhhhhh

fintail > AestheticsInMotion 01/22/2020 at 22:44

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Only the first gen (before 1978) and to a lesser extent, 78-79 Broncos bring big money. The rest are relatively affordable.

That SL is either a 1972-73 US market car, or a Euro car before 1981 - hard to tell from the angle . It is on AMG/Ronal “Penta” wheels, which are period correct for around 1980. R107 SLs are generally undervalued, even if that one is nice, it’d be lucky to pass 15K, and decent ones can be a bit cheaper. Know what you are looking at though, they are in no way sporty - they are a boulevard cruiser, and something of a guzzler. Loads of style for the money though, they were quite chic in the 70s-80s and still have a stylish air now.

MrDakka > AestheticsInMotion 01/22/2020 at 23:05

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Thats not how you save for retirement. You save for retirement by making YOLO plays on risky biotech penny stocks. How else are you supposed to have cocaine and snort it off of the Lambo wing?

50% chance of 4000%+ returns? Better odds than Vegas.

This is the WSB way

MrDakka > MrDakka 01/22/2020 at 23:25

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Ghetto edit: Don’t actually do this, the odds are much lower as a prospective drug has to pass through a gauntlet of trials and review boards and the company could  fold before a drug is even brought on to the market.

pip bip - choose Corrour > AestheticsInMotion 01/23/2020 at 06:55

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:)

Rusty Vandura - www.tinyurl.com/keepoppo > AestheticsInMotion 01/23/2020 at 12:17

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I think the thing about ROTH is it’s good if you have already-taxed money to contribute.

Highlander-Datsuns are Forever > AestheticsInMotion 01/23/2020 at 12:41

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Have you ever been in a bronco II? They are really shit vehicles. 

superdave847 > AestheticsInMotion 01/23/2020 at 22:34

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I love that you literally have to bump into the owner in person to get a chance to buy this Bronco.

Also, I completely agree on the wisdom of a ROTH IRA. Get as close to maxing it out as you can. Make that compound interest work in your favor. It sounds like time is on your side!