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Roth Contributions on Hold

September 10th, 2011 at 01:39 pm

I put our monthly Roth contributions on hold last month. It made a huge difference in how our cash flow felt. With DH living in another state, money is much tighter. The lack of roth contributions helped ease the tension.

We decided to keep our monthly contributions on hold until the end of the year.

Now I can't say I'm real proud of this decision, but our goal is still to max out our contributions. It might take until April 15th, but we will make the investment in our future.

I expect that we will receive a large refund this year because of wages that are within range to be eligible for the earned income tax credit. Nontaxable combat pay helps us meet this criteria. Kind of odd, considering the time in combat was our highest earnings ever. So, if needed the remainder of our 2011 Roth contributions will come from this money.

We still do not have our next duty assignment. The sooner we know where we are going and can get this house sold the better for our emotional and financial health. I personally can't wait!

3 Responses to “Roth Contributions on Hold”

  1. laura(momcents) Says:

    I, too, have a difficult time with uncertainty. Seems like I think things through logically and it brings me some measure of comfort to know that we will be OK (speaking of a possible layoff at DH's company). However, it seems that my sense of security is never very long-lasting or innate.

    I agree that it makes the most sense to halt contributions to the Roth IRA for the time-being. Maybe after you're a month or two into the new budget, you can take whatever excess you have and make a deposit.

    I think this has to be a tough time for you, separated from DH, though thankfully he's not deployed. And not knowing where your going. But it all works out in the end, right?!

  2. Petunia 100 Says:

    I think it makes sense to delay anything and everything you can when cash flow is tight and immediate future is uncertain. You still have 7 months to max those Roths.

  3. MonkeyMama Says:

    I really like that about the IRAs - that you have until next April to fund. We usually wait to the last minute to decide if we can really swing it. We usually do, but it's nice to have the time to decide.

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