Comments on: Should I Choose a Traditional, Roth, or SEP IRA?

By: Steven N. Severinghaus

Steven N. Severinghaus — Mon, 06 Apr 2009 17:13:50 +0000

GE, it’s not a matter of some of us reading it the wrong way. You say:

One very nice aspect of traditional IRA’s is that you can contribute for the previous tax year up until the tax filing deadline of the present year (…). You cannot do this with a Roth IRA.

This is simply false. You can indeed do this with a Roth IRA. I do understand your point, but this is not the right way to make it.

By: NEEZYNATE

NEEZYNATE — Tue, 31 Mar 2009 22:11:19 +0000

I think either way is good way to go. i personally have no idea what to do. i have a roth IRA but am not sure if it is the best choice for me. CheckingFinder is now offering a limited time offer of a trial membership to Dave Ramsey’s MyTotalMoneyMakeover.com (Renown Personal Finance Advisor) for every person who submits an application.

here is an example of some nationwide bank rates

Rates with a * signifies this bank rate is available nationwide

Florida Central Credit Union

6.01

First Robinson Savings Bank*

6.01*

Connexus Credit Union*

5.15*

Keystone Bank*

5.15*

Community Bank of Pleasant Hill*

5.01*

Three Rivers FCU

5.01

Union State Bank/Bank of Atchison*

5.01*

Beacon Federal Credit Union

4.51

Communications Federal Credit Union*

4.25*

First New England Federal Credit Union

4.15

By: GE Miller

GE Miller — Mon, 30 Mar 2009 13:25:10 +0000

In response to Mason’s comment – my point was that the traditional IRA offers you an opportunity to get a tax deduction up until April 15 of the following year, whereas the Roth IRA offers no tax deduction at all (even though you can contribute up until April 15 with the Roth). I can see how it may be read the other way though.

By: Matt B

Matt B — Mon, 30 Mar 2009 13:05:43 +0000

Will anyone at Mint follow-up on the discrepencies mentioned in the earlier comments and update the post to correct it?

If you are going to give financial advise like this, you should be willing to own up to instances of you being wrong…

By: Kevin from Minneapolis

Kevin from Minneapolis — Sun, 29 Mar 2009 22:03:37 +0000

Go Roth, pay your taxes now. They’ll be demonstrably higher by the time you retire and you’ll be smiling your way around the golf course while your friends with traditional Roths work part-time at Walmart.

By: Matt B

Matt B — Sat, 28 Mar 2009 13:29:19 +0000

I believe that Mason Kong is correct about Roth IRAs.

By: Drew

Drew — Sat, 28 Mar 2009 13:21:35 +0000

Mason: You’re correct. The article is very wrong here. Mint really shouldn’t be giving financial advise if they don’t know what they’re talking about. Here is the definitive rule on contribution to Roth IRAs:
http://www.irs.gov/newsroom/article/0,,id=134667,00.html

By: hereverycentcounts

hereverycentcounts — Sat, 28 Mar 2009 01:39:18 +0000

ps Mason is right… you can put money in a roth IRA up until April 15 for the year before!

By: hereverycentcounts

hereverycentcounts — Fri, 27 Mar 2009 23:34:16 +0000

Question for you… if you know the answer. I’ve been trying to figure this out — if I max out my IRA and I’m not self employed (but my company doesn’t have a 401k) can I open a SEP? I have minimal freelance income… maybe $2000 a year tops, all the rest is income from my full time gig. Trying to figure out best place to put my extra money once I max out my Roth. Thanks!

By: Mason Kong

Mason Kong — Fri, 27 Mar 2009 22:49:16 +0000

The article says, “One very nice aspect of traditional IRA’s is that you can contribute for the previous tax year up until the tax filing deadline of the present year (i.e. you can contribute and get a tax deduction for 2008 up until the April, 2009 tax deadline for 2008’s taxes). You cannot do this with a Roth IRA.”

If the “cannot do this with a Roth IRA” is referring to the ability to contribute to the account up to the filing deadline in the following calendar year, I don’t believe that is correct. Roth IRAs may also be contributed to in the following calendar year up to the tax filing deadline.