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Roth IRA is maxed for the year. Now what?

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  • Roth IRA is maxed for the year. Now what?

    My husband is in his 3rd year of Optometry school. We have maxed out our Roth IRA amount for the year. So we are trying decide what to do with our extra income from my job.

    *Start paying on the school loans that have the highest interest

    *Save up for our future baby (hopefully happening in the next year)

    *Any other ideas?

    We'd appreciate any thoughts on the best way to use this money.

  • #2
    Both of the ideas which you have put forth are good uses.  To give you best possible plans, would need to know more, mostly:

    • Other debts (mortgage, CC, personal debts, car notes, etc)

    • Other tax-advantaged retirement accounts (401k, 403b, and such)

    • Total retirement savings

    • Cash reserves, such as emergency fund.


    Be aware that you can both have Roth IRAs up to $5,500/year, even if one of you doesn't work, under the KBH spousal IRA rule.

    Why do your school loans have high interest?  Have you not refinanced them to the lowest possible rate/term at which you can afford the payment?

    Good luck with future baby!  Cheers

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    • #3


      Be aware that you can both have Roth IRAs up to $5,500/year, even if one of you doesn’t work, under the KBH spousal IRA rule.
      Click to expand...


      I learned this today. This should be more frequently discussed!

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