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Heres how much car you can afford Follow the 35 rule. Also theres a limit of one rollover per 12.

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Whether youre paying cash leasing or financing a car your upper spending limit really shouldnt be a penny more than 35 of your gross annual income.

. If you do it will be treated as an excess contribution to the IRA and youll owe a 6 annual penalty each year that the money remains in the account. That means if you make 36000 a year the car price shouldnt exceed 12600.

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