White Coat Investor Podcast WCI #338: Is It Ever a Good Idea to Over Fund a Roth IRA?
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Oct 26, 2023 The podcast discusses various topics including using 457(b) money for college education, 401(k) rollovers and rebalancing, Roth contributions in peak earnings years and overfunding a Roth IRA. They emphasize the importance of prioritizing retirement savings and following an investment plan, while also discussing alternative ways to fund college. They also touch on tax-deferred and tax-free contributions to retirement accounts, the benefits and drawbacks of overfunding a Roth IRA, and promote the White Coat Investor Champions Program.
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Using 457(b) for College
- Roll over your 457(b) into an IRA for better control and investment options.
- Use 457(b) money for kids' college if needed but prioritize your retirement first.
Stick to Your Investment Plan
- Follow your written investing plan over chasing higher cash yields.
- Bonds offer value through interest rate changes; timing markets is risky.
Roth Contributions and Tax Strategy
- Contributing to Roth 401(k) during peak years can be smart if moving to a high-tax state later.
- Early retirement usually favors tax-deferred savings for Roth conversions in low brackets.