Roth Conversion & 401k Limits &

Deadlines - Get Expert Answers to

Your Most Important 401k
Questions

By Thomas Quinlin
Retirement funds & 401k plans can be
a little confusing even in the best of
times

…the question about Roth Conversion

only adds to the complexity  
What are the
current 401k
limits?
 The 2010 limit for contributions
to a 401k for employees who are
49 years of age or younger is
$16,500
Employees who are 50 or older are allowed
what is called a "catch up" contribution
The amount for this is currently an additional $5,500, for a total of $22,000

Since these limits will likely change for

2011, be sure to check for the
latest numbers at that time
  

What about 401k deadlines?

 You may know that you have until
April 15 of the following year when
you put money into an IRA

• That's not the case with 401k accounts!

• For those, you will have to make any
contributions by the end of the same
calendar year
 So if you want to make contributions for
2010…

 …be sure to make it by December 31st of

2010, i.e., the year for which you want
them to count

Don't miss your 401k deadlines or else

you'll lose out on the deductions
What about Roth Conversion
& Roth 401k Accounts?
Roth 401k accounts are different from the
traditional 401k accounts

…Here, the money is contributed

from your after tax income
 There's a plus side, however:
once you retire, you can withdraw that money tax-free

…Or you can keep it where it is & let it

earn some more money for your
later years - or your heirs
The limits & deadlines are the same as
for the traditional 401k
To Roth or not to Roth?

 
Whether you choose to invest
in a traditional 401k or a Roth
401k or both…
…the limit for your 401k
contributions applies to the total
amount you contribute to the
traditional 401k & a Roth 401k
together
 You cannot double your
contribution by contributing to
both types of 401k…
…but you can choose how much you
contribute to each kind, up to the
maximum limit allowed for both together
 Going over your 401k
contribution limit can result in
stiff taxes & penalties, so avoid
this at all costs
 Financial advisors that can help you
work your way through the details

They are there to sweat the small stuff

so you won't have to
 Get help from a financial advisor who specializes
in overcoming 401k contribution limits

…by helping you to invest in alternative

investments that can yield a much
higher return with excellent safety
These kinds of investments are especially
powerful inside Roth accounts

…which high income earners can

finally take advantage of in 2010
Ask private wealth management advisor
Thomas Quinlin about Roth Conversion
when you talk with him about options to
supercharge your 401k
• Contact Thomas at
http://LifeStyleDesignGroupIntl.com
• For more information about Roth
Conversion at:
http://RothConversion2010.net