Welcome to another edition of the Friday Blog Roundup. Here I plan on sharing articles covering a specific financial topic as well as some interesting personal finance posts that I came across during the week. I hope you enjoy!
Financial Topic: Mega Backdoor Roth IRA
A Roth IRA is a great retirement account. How can you argue with tax-free growth and withdrawals? The annual contribution limit for 2017 is $5,500, with an additional catch-up of $1,000 for those over the age of 50. Well, what happens when you reach the contributions limits? Is there any way to put more money into a Roth IRA? Yes there is. Enter the Mega Backdoor Roth IRA. Using this strategy, one would be able to contribute up to an additional $36,000 to their Roth account!
Unfortunately, most of us won’t have access to a Mega Backdoor Roth IRA. You need a 401(k) plan that allows both after-tax contributions above the $18,000 annual employee limit AND in-service withdrawals. If you’re fortunate enough to have a plan that checks both boxes, then this can be a great way to set aside even more tax-free money for retirement.
Personal Finance Blog Roundup
Car payments seem ubiquitous in today’s consumerist society. Do you have one? We’re All Poor Here asks Why Do You Want a Car Payment?
Anyone with student loan debt knows that it can be a hindrance to building wealth. Max Your Freedom talks about this and more in his article The Student Loan Curse.
Personal finance for couples takes teamwork. To that end, Save, Splurge, Deny Debt shares some useful tips for Building a Financial Team Together.
Teen Budgeting, an engineering student at NC State University, discusses some ways to Save Money in College. At 18 years old, this guy is way ahead of the game…
I hate all kinds of debt, with credit cards being at the top. Broke As B shares how they racked up $17,000 in Credit Card Debt at 23.
And finally, Steve over at ThinkSaveRetire says it’s Okay to Be Selfish. I agree with him.
Thanks for checking out this week’s installment of the Friday Blog Roundup. Until next time!