Hello Everyone, As money makes each individual lliving ife style differs, I would like to start a thread on "Retirement Savings plan"............ As currently i am living in USA and me nd my hubby belongs to IT field (as we all know how IT people's life here :spin) of course, no permanent jobs yet for some atleast.... I feel that everyone atleast once they might think about retirement savings.... We all knew that as full time people they already get 401K plan, so they dnt c any problem.... but for the people who doesn't have stability yet, thinking to save for retirment is there any other options that would work for people like us... I have heard something like RothIRA, but does not know much about that.... So, Ladies what would be your options/suggestions that you could plan best for ur family future savings etc... Any comments/suggestions.... would be more than welcome....... waiting to see comments from you all........ Cheers, Chitti.
Hi Chitti - great topic! We have discussed in the following threads some information about Roth IRA, etc. http://www.indusladies.com/forums/money-matters/19013-roth-ira-pros-and-cons.html http://www.indusladies.com/forums/money-matters/11188-401-k.html There are pros and cons to investing in either a Traditional IRA or a Roth IRA. In a traditional IRA, you get an immediate tax benefit since the contributions are tax deductible (subject to income limitations). In a Roth IRA, the future withdrawals are not taxable. You will weigh your situation and see what benefits you the most.
Hi Shobanag, Thanks for your reply. I just read the thread. Coming to Roth/Traditional IRA, Is there any specific amount limit initially to be paid to start with? And also i heard that, If you needed to break the term in the middle and needed to take the money back for some reason, How will that work? {Like for e.g. we doesn't know are we going to stay here in USA (or) if we needed to go back to india, in such case we definately need to break the term right?}
Chitti There are a lot of rules and limitations associated with each. Traditional IRA and Roth IRA - the maximum amount that you can contribute is $5000 for 2008 - it will be adjusted for 2009 and future years. It is subject to income limitations. If you withdraw the money out before you are 59 1/2 years of age, there is a 10% penalty for early withdrawal. However, there are exceptions - if the money is used for certain medical reasons, first time home buyers, education expenses. You can get a lot of information if you google this information. I am only giving a brief description here.
Hi Shoba, Sorry for late reply and thanks for your suggestion. Let me keep explore on that.... Cheers, Chitti.
