IRAs are great retirement accounts. Has anyone already contributed to their 2018 $5500 max?

You will need to roll it over into an individual IRA, but yes you will be able to contribute up to $5500 per year.

This just reminded me that we have a 401K that was started in March with my husband's employer, but he changed jobs last week, so now I have to figure out what to do with it. Frank, I'm pretty sure we discussed this somewhere on the boards a few months ago and you said we can keep contributing to it, right?

And 401K are much much more common. One is not necessarily better than the other.

FrugalFran wrote: Out of curiosity, what is the difference between a 403B and a 401K?

From what I understand, a 403B is only available for employees of non-profits, government entities, schools, and religious organizations. It depends on the particular plan really, but the administrative fees are usually lower and the deferral limit is usually higher in a 403B. I don't think you usually get a choice as most employers only offer one or the other.

Out of curiosity, what is the difference between a 403B and a 401K?

Lexie, if the IRA is more accessible than the 403B, I would think you're doing the right thing. Having money on hand when caring for an aging parent is pretty important.

I'm getting ready to roll over a 403B into an IRA at my bank. I'm retired and would like my money closer in case I need it for my aging mom. The financial planner encouraged me to do this. What are your thoughts?

IRA is an "Individual Retirement Account" and 401K is typically from the companies you work for. Within those, you can have a ROTH or a regular account. ROTH contributions are not taxed deductible, but are tax free when you withdrawal from them in retirement. Regular accounts are tax deductible, but are taxable income when you withdrawal from them in retirement.

Let me know if that is helpful or if you have any other questions.

Exactly how is an IRA account different from a 401K? Right now 401K is the only type of retirement account I have. Should I also have an IRA?

We went with a Roth IRA. We researched the differences and discussed them with our financial adviser and the consensus was that a Roth would be best. We weren't able to contribute the max this year, although we came close. I'll be investing right after New Year's to get a jump on 2016.

That is great to hear, and it is never too late to start. May I ask if you are opening up a Roth IRA or traditional? Depending on your situation, each has its own advantages and disadvantages.

I will be opening our first IRA this year. I should have done it several years ago, but I have to admit that I procrastinated. I'm kicking myself for it and I plan on rectifying the situation before fall.

IRA's food for thought. Diversify. And, don't leave the IRA in the control of your company if you can get to a third party administrator. With Bankruptcy's the only thing you are sure of is nothing and many a company has found ways around IRA's. You have to protect yourself. Even if the company never meant to hurt anyone things happen. You have to watch out for yourself

I second that! IRA's are now self controlled, we no longer rely on money market interest. We can put our money to work either way we choose. You can invest in stocks or even short them with most accounts. In and out if you want, or you can let your investments ride. It is also possible to invest in commodities, such as gold or oil with an IRA account.

IRA's food for thought. Diversify. And, don't leave the IRA in the control of your company if you can get to a third party administrator. With Bankruptcy's the only thing you are sure of is nothing and many a company has found ways around IRA's. You have to protect yourself. Even if the company never meant to hurt anyone things happen. You have to watch out for yourself!

That's a good point about the low yield accounts. I guess on the one hand it's better to be earning something than having the money in your mattress, but no sense in creating accounts if you aren't going to try to make more.

Leaving it under your matress isn't going to help you fight the cost of inflation either. You are better off paying down your bills or any debt you have rather than stashing that cash away for a rainy day. Of course that is after you create yourself a emergency savings fund.