For the first time since I’ve been married (2008), I’ve contributed to a Roth account. I didn’t have much set aside, so I limited myself to $500 into my Roth for 2014. We just barely scooted in under the contribution income limits for 2014, and I wouldn’t have been able to put in the full amount anyway. $500 was enough that I could scrounge up from “extra” money laying around, and we’ll be getting about that much back from our taxes, so I can “float” the $500 in our budget until we get the money from the state of VA.
$500 is also just over the magic number I need to add to the account to qualify for Fidelity’s Advantage class (vs Investor class), which saves me 0.03% in fees (0.10% for investor vs 0.07% for advantage). This is why I really did it 🙂 I have $200 leeway for the markets to decline and still remain above the 10k minimum needed. I now only have investor class funds in my taxable account, where I just managed to get the $2500 minimum to buy into FSTMX; so it’ll be a while before I qualify for the advantage class fund there.
We should qualify for contributing 2015 funds as well (hopefully the full amount) since I’m finally maxing out my 401(k) contributions and lowering our MAGI. I’m budgeting to put about 75% of the maximum 11k in for 2015. I’m hoping to start a specific budget line item for our Roths in June/July with $950 each month – then doing the actual contributions the following February (once we can confirm that our MAGI is under the contribution limits). The exact timing depends on how closing goes down, how much we have left from what we’ve saved, and what our monthly cash flow looks like.
Did you max out your Roth contributions for 2014?
Hitting those investment limits is oddly motivating. I think there’s a sneaky good impact on our finances, trying to save more to hit those amounts.
Unfortunately, the only limit left is 10k in our taxable account. Seeing the next 10k or 100k in my net worth is just as motivating though!
Congrats….sounds like the finances are running on all cylinders!
Hopefully! We’ll take a hit after paying closing costs, but we should be good after that.
We have the funds for our 2014 Roths set aside, but are waiting on getting to the tax man to see if we need to backdoor or not since our income was a bit higher and I am not sure how close to the limits we were in 2013.
We have too much in traditional IRAs to try a backdoor at this point, and it’s not worth the effort (or cost) to get rid of those IRAs into our 403(b)s. I’ve almost done our taxes, just waiting on a final w2 before we can file. I already bugged the company, so I should be getting it this week or next. I have the information, just not the formal document yet…