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Joined: 13 Oct 2010
|What to do with my investment income?
I would like to start retirement accounts for my wife and I and to fund them, I am selling 10k worth of shares in a company I invested in. I would like to know the smartest way to handle it. After researching a bit these seem to be my options:
My first choice is Roth IRAs but then I have to pay taxes on it correct? Is there a way that these contributions would not count against taxable income?
Second option: Put it in Traditional IRAs I wouldn't pay taxes but then it is not as smart long term. No taxes here until I withdraw, right?
Third option: I have a 401k available at my job, but I have not started it yet. I have enough cash on hand to direct all my remaining paychecks for the year into this account, then contribute the remaining amount to max out the IRAs and just take the 10k as investment income (if there is not way around the taxes). In this case, I would just roll over the 401k to a Roth later on.
Do I have other options? What do you guys recommend?