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I've never understood the different annual cap limits on 401k's and IRAs.  Why can you contribute up to $23,500 to a 401k but only $7000 to an IRA?  Just seems like punishing self-employed people and I see no reason for that. 

Actually, I don't really see the point in limiting either one of them.  I assume it has something to do with the gub'ment not wanting to give you a tax break on too much of your money. 

You do understand.

I've never understood the different annual cap limits on 401k's and IRAs.  Why can you contribute up to $23,500 to a 401k but only $7000 to an IRA?  Just seems like punishing self-employed people and I see no reason for that. 

Actually, I don't really see the point in limiting either one of them.  I assume it has something to do with the gub'ment not wanting to give you a tax break on too much of your money. 

Being self-employed you have other options.  Like a sep-ira. Current limits are 25% of your net self-employment income or 70k whichever is smaller

I started contributing to my Roth at age 20.

I think I started at 23? Did not buy a house then. 

first year of the Roth was 98

What did it cost you?  Was this before the subsidies, or after, and what do you have now?  I think I recall you ended up going back to work. 

I think there’s a cap at like 8.5 percent of your income for total health care costs. 

But if your income is high enough, you probably have a job with decent insurance. 

COBRA is interesting because it’s super, super variable depending what your job offers and what the company population is like. 

I've got nothing to convert, but my wife does. We're looking at it - probably when I retire. 

She is retired but has a high-income pension. Have to weigh things out carefully. I'm guessing it's a "maybe" at best based on taxes.

if you don't presently have a roth...
folks who do not qualify for a Roth IRA should always do a  back door Roth contribution each and every year.


1. fund IRA to max.   
2. next day convert to a Roth.