403b
I put 22% of every paycheck into my 403B. For 2023 the total amount was $21107. It doesn’t leave me any extra money to put into a ROTH IRA because I need the rest of my paycheck for living expenses. I’m 52 years old and plan on working until I’m 65. Should I decrease how much I put in to my 403B so that I can put money into a Roth IRA every year?
Terry Says
First, congratulations on maximizing your 403(b) contributions. You’re doing a great job of saving. For sure, invest enough in your retirement plan to get your full employer match.
After that, you might consider a Roth if you’re confident at investing, because in a Roth IRA you are responsible for the investment choices.
Since you’re over age 50 in 2024, you can contribute $8000 to a Roth, if you are single and your Modified Adjusted Gross income is $146,000 or less. Above that, your ability to contribute to a Roth is phased out. With income above 161,000 you’re not allowed to contribute anything to a Roth IRA.
And learn about total contribution limits for 2024 here:
https://www.irs.gov/newsroom/401k-limit-increases-to-23000-for-2024-ira-limit-rises-to-7000
