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Ask The Expert: Contributions

Q:
Asked by Camilla 9/16/12

How much should you save every month in your Roth IRA?

Matthew Malone A:
Answered by Matthew Malone 9/17/12
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363 out of 610 people found this useful.

It depends on your financial situation. Many financial planners will tell you to build an emergency fund, equal to three to six months pay, before saving for retirement. Others favor a combined approach. Either way, you shouldn’t go into debt for the sake of saving in a Roth. The interest will almost always be more than you can expect to earn on the IRA. And all of us are subject to annual contribution limits, currently $5,000 in 2012 ($6,000 for those 50 and older).

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