4 ms·

How do you get 2.5M in an IRA if they only let you put in 6K a year? Can you buy dogecoin in an IRA?

by dheera 5y ago

awithrow 5y ago
If you had a 401k when leaving a job, you can roll that into your IRA. A 401k has much higher limits
- dheera 5y ago
  so you can put upto 401K into an IRA when you leave?
  - awithrow 5y ago
    no, the savings vehicle at many workplaces is called a 401(k) (named after the section of the tax code that describes it). When you leave a job that offered the 401(k) you can take the money that was in it and transfer it to your IRA. This process is called a "rollover". 401(k)s have much higher contribution limits, can have money added to it by the employer (usually via matching contributions) and sometimes have methods to add after tax money to them.
SavantIdiot 5y ago
I've had a 401K since I was 21 (30+ years investing) and put the max in every year following the "normal" investment strategy (balanced mutual funds). And had company matching almost every year as well. This means I invested through the tech boom of the 90's and the recovery of 2008. At one point I left jobs and rolled the 401K into a managed IRA because I didn't have a job for a brief period. Now I have another 401K with another company, but I chose not to roll my original one into the new 401K because my IRA has better investment options. TL;DR: Start investing as soon as you can, and by "investing" I mean the Warren Buffet way on the diversified mutual fund grid (cap vs valuation), and not this memestock/crypto B.S.
qntty 5y ago
The 6k limit is for a Roth IRA, which is only one kind of IRA.
- dheera 5y ago
  Seems to apply to both: > The 2021 limit for contributions to Roth and traditional IRAs is $6,000 https://www.investopedia.com/roth-and-traditional-ira-contribution-limits-for-2021-5085118 https://www.investopedia.com/roth-and-traditional-ira-contri...
  - qntty 5y ago
    The limit for a 401k is higher, which is typically rolled into a traditional IRA.

How do you get 2.5M in an IRA if they only let you put in 6K a year? Can you buy dogecoin in an IRA?

by dheera 5y ago

How do you get 2.5M in an IRA if they only let you put in 6K a year? Can you buy dogecoin in an IRA?

awithrow 5y ago

If you had a 401k when leaving a job, you can roll that into your IRA. A 401k has much higher limits

dheera 5y ago
so you can put upto 401K into an IRA when you leave?
- awithrow 5y ago
  no, the savings vehicle at many workplaces is called a 401(k) (named after the section of the tax code that describes it). When you leave a job that offered the 401(k) you can take the money that was in it and transfer it to your IRA. This process is called a "rollover". 401(k)s have much higher contribution limits, can have money added to it by the employer (usually via matching contributions) and sometimes have methods to add after tax money to them.

SavantIdiot 5y ago

I've had a 401K since I was 21 (30+ years investing) and put the max in every year following the "normal" investment strategy (balanced mutual funds). And had company matching almost every year as well. This means I invested through the tech boom of the 90's and the recovery of 2008. At one point I left jobs and rolled the 401K into a managed IRA because I didn't have a job for a brief period. Now I have another 401K with another company, but I chose not to roll my original one into the new 401K because my IRA has better investment options. TL;DR: Start investing as soon as you can, and by "investing" I mean the Warren Buffet way on the diversified mutual fund grid (cap vs valuation), and not this memestock/crypto B.S.

qntty 5y ago

The 6k limit is for a Roth IRA, which is only one kind of IRA.

dheera 5y ago
Seems to apply to both: > The 2021 limit for contributions to Roth and traditional IRAs is $6,000 https://www.investopedia.com/roth-and-traditional-ira-contribution-limits-for-2021-5085118 https://www.investopedia.com/roth-and-traditional-ira-contri...
- qntty 5y ago
  The limit for a 401k is higher, which is typically rolled into a traditional IRA.