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Biglaw Summer: I want to start a retirement account
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Date: June 15th, 2013 9:38 PM Author: Glassy wrinkle Seems prestigious and I'm sure there are huge financial benefits to starting early. I'm thinking a roth may be best. Anyone know the best way to go about this. (http://www.autoadmit.com/thread.php?thread_id=2283036&forum_id=2#23404141) |
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Date: June 15th, 2013 9:41 PM Author: Henna nighttime rehab just wait till you start full time and do it through your firm. it's not like a roth is going to give you any tax benefit anyway (http://www.autoadmit.com/thread.php?thread_id=2283036&forum_id=2#23404158) |
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Date: June 15th, 2013 9:41 PM Author: Razzle Brilliant Toaster will your firm let a summer start a 401k? i doubt it.
so you should just establish an account at vanguard, set it up as a roth IRA and put the max in, 5500. |
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Date: June 15th, 2013 9:47 PM Author: Glassy wrinkle Firm will probably let me start a 401k.
how difficult is it to set up the vanguard? |
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Date: June 15th, 2013 9:49 PM Author: Razzle Brilliant Toaster extremely easy. like buying something on amazon, you just need to enter a few more pieces of info (ssn, etc.)
i would be surprised if any company allows interns to use their retirement plan. even if the company doesn't contribute, there are administrative costs associated with every additional account. if they know you're going to be there three months, they may not want to incur them. |
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Date: June 15th, 2013 9:53 PM Author: Glassy wrinkle Are there any future considerations I should take into account? I remember some other thread about rolling over an IRA to get past the 5500 roth cap? This won't affect my ability to do that in the future right?
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Date: June 16th, 2013 12:08 PM Author: Razzle Brilliant Toaster the backdoor roth ira trick is for people who make too much to contribute to a roth ira. you can't get around the yearly contribution limit.
http://www.bogleheads.org/wiki/Backdoor_Roth_IRA |
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Date: June 16th, 2013 2:54 PM Author: Glassy wrinkle Ahh, ok. Will opening a roth account preclude me from using the backdoor roth trick later if my income becomes to high? (http://www.autoadmit.com/thread.php?thread_id=2283036&forum_id=2#23407939) |
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Date: June 16th, 2013 2:57 PM Author: glittery indirect expression hell no. Having a traditional IRA would cause problems, not a roth. (http://www.autoadmit.com/thread.php?thread_id=2283036&forum_id=2#23407953) |
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Date: June 16th, 2013 3:02 PM Author: Glassy wrinkle Sweet. Few questions then?
If I open a roth now, and contribute up to the 5500 limit each year, when i convert my traditional IRA can I roll it into my current roth account, or would i have to open up a new one? Would that conversion count against the 5500 limit?
What about a regular 401k? Could I do that in biglaw while also contributing to a roth?
I'm a total prole when it comes to this stuff so I have no clue. |
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Date: June 15th, 2013 9:43 PM Author: Sadistic sanctuary Do you know what kind of stipend/salary advance your firm will do for the bar exam? Because I know I need to save some of my pay just so I can have something to live comfortably on. (http://www.autoadmit.com/thread.php?thread_id=2283036&forum_id=2#23404172) |
Date: June 15th, 2013 9:44 PM Author: Orchid gay wizard Roth it while you're in the lowest bracket. (http://www.autoadmit.com/thread.php?thread_id=2283036&forum_id=2#23404175) |
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Date: June 15th, 2013 9:48 PM Author: Glassy wrinkle This was my thinking as well (http://www.autoadmit.com/thread.php?thread_id=2283036&forum_id=2#23404203) |
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Date: June 15th, 2013 9:45 PM Author: Vivacious Ebony Field Anyone can start an IRA. Ideally you would have done this in college. (http://www.autoadmit.com/thread.php?thread_id=2283036&forum_id=2#23404184) |
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Date: June 16th, 2013 12:10 PM Author: maize school who the fuck would do that in college? seriously all my extra money went to narcotics, electronics and clothes (http://www.autoadmit.com/thread.php?thread_id=2283036&forum_id=2#23407167) |
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Date: June 16th, 2013 2:58 PM Author: Big shaky brunch scourge upon the earth just do invest $5k of cash in a retirement account in undergrad bro (http://www.autoadmit.com/thread.php?thread_id=2283036&forum_id=2#23407960) |
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Date: June 16th, 2013 2:59 PM Author: glittery indirect expression hell This is a pretty good idea, if you are getting money from your parents. Actually, the ideal is to start from an even earlier age. It's a nice tax benefit. (http://www.autoadmit.com/thread.php?thread_id=2283036&forum_id=2#23407963) |
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Date: June 16th, 2013 12:05 PM Author: trip cobalt hall kitty cat Are you a summer associate or incoming first year this fall? I'm confused.
As a SA you won't likely (99.9%) be able to enter into their retirement plan. Either do a Roth or a Traditional IRA at the financial institution of your choice.
If you are a first year you probably won't be able to enter until next year, but you never know. Enrollments are generally quarterly and you'll probably just miss the Sept cut off date, making you wait until 2014. But it depends on your plan and your start date. If you can't do a Roth or a Traditional IRA at the financial institution of your choice.
A Roth I think would be a PITA since you won't be eligible after you start, so there'll be a middling chunk of change laying out in a bank you can no longer contribute until you are no longer at biglaw or the rules change. Unless you've been smart and doing one since 18. |
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Date: June 16th, 2013 2:55 PM Author: Glassy wrinkle Couldn't I do the Roth now (2L Summer) and then when I enter biglaw do the backdoor roth trick that was mentioned in another thread? (http://www.autoadmit.com/thread.php?thread_id=2283036&forum_id=2#23407948) |
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Date: June 16th, 2013 2:56 PM Author: glittery indirect expression hell Yes, roth IRA now. Backdoor roth IRA + traditional 401K when you start full time. (http://www.autoadmit.com/thread.php?thread_id=2283036&forum_id=2#23407950) |
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Date: June 16th, 2013 2:57 PM Author: Glassy wrinkle tyty i will do this (http://www.autoadmit.com/thread.php?thread_id=2283036&forum_id=2#23407956) |
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Date: June 16th, 2013 12:08 PM Author: glittery indirect expression hell Roth IRA for sure. If your firm lets summers do 401K and you can do Roth 401K, that might be a good idea too. Don't do a traditional 401K while in a low tax bracket. (http://www.autoadmit.com/thread.php?thread_id=2283036&forum_id=2#23407161) |