Comments on: Net Worth Update: $496,016.17 (Up $7,798.97)

By: J. Money

J. Money — Mon, 23 May 2016 18:44:48 +0000

In reply to naughtygrog. And across about 95% of the entire country too! Congrats man! Gotta hit your first $1,000 before you can cross that $1,000,000 mark ;)

By: J. Money

J. Money — Mon, 23 May 2016 18:43:52 +0000

In reply to Financial Samurai.

$5,500 max per person under 49
$6,500 max per person 50 and older

For single filers phase-out starts at $117,000; ineligible at $132,000
For married filers phase-out starts at $184,000; ineligible at $194,000

More info here (I cheated as who can remember all this stuff?? :)):

http://www.rothira.com/2016-roth-ira-limits-announced

By: David @ Thinking Thrifty

David @ Thinking Thrifty — Fri, 20 May 2016 12:32:18 +0000

That’s one hell of a month. I love seeing success stories like this, especially when all but one of my friends thinks I’m crazy if I think I’ll be retiring by 50. Just goes to show how much they know really! Thanks for the tools man, I’ve been saying I’ll do this for over a month now, it’s time I got it sorted!

By: naughtygrog

naughtygrog — Thu, 19 May 2016 20:42:00 +0000

I just broke a thousand dollars in savings this month!!! I know I have to get that about 500 times larger but it’s celebration worthy at my house.

By: Financial Samurai

Financial Samurai — Wed, 18 May 2016 09:22:25 +0000

Hola J,

Nice progress! Can you remind us again what the income cap is for being able to contribute to a Roth? I remember there was some limit, but I guess goes up a decent amount if you are married? I’m a no Roth guy largely due to not wanting to pay taxes up front.

Thx,

Sam

By: J. Money

J. Money — Mon, 09 May 2016 17:29:53 +0000

In reply to Tyler @ Oddball Wealth.

Yes to both!

There’s a limit AND a cap to how much you can invest into a Roth IRA depending on how much you make.

Info on income limits here: https://www.irs.gov/Retirement-Plans/Plan-Participant,-Employee/Amount-of-Roth-IRA-Contributions-That-You-Can-Make-for-2016

And info on the max amount you can contribute here: https://www.irs.gov/Retirement-Plans/Plan-Participant,-Employee/Retirement-Topics-IRA-Contribution-Limits

SEP IRAs are a bit different in that it’s tied to the amount of profit you business makes, but there is a cap to how much you can invest in it. More info here: https://www.irs.gov/Retirement-Plans/IRA-Based-Plans

But the nice thing here is that you CAN invest in both during the year :) So long as you’re following the rules.

By: Tyler @ Oddball Wealth

Tyler @ Oddball Wealth — Sun, 08 May 2016 03:55:16 +0000

Great job on your current financial progress! One question, is there a limit or income threshold on the amount you can contribute to both a roth IRA and sep IRA per year?

By: Jayson @ Monster Piggy Bank

Jayson @ Monster Piggy Bank — Sat, 07 May 2016 22:36:52 +0000

You rocked it, J Money! You’re such an inspiration for so many.

By: Josh

Josh — Sat, 07 May 2016 10:42:13 +0000

In reply to J. Money. Goooooot it! Thanks J. That makes a lot more sense. If you figure out how to live off of ~$1300/mo., let us know. :p

By: J. Money

J. Money — Fri, 06 May 2016 18:44:05 +0000

In reply to Mortimer. Hmm.... I know some people opt for a Roth IRA instead for their kids? Can't recall the exact rules off the top of my head, but other than just a normal brokerage account the IRA is the most often one I see.