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Investing/Strategies / Retirement Investing
|Subject: Re: ira||Date: 12/28/1998 10:29 AM|
|Author: TMFPixy||Number: 7519 of 82747|
Greetings, Jlmcrna, and welcome. You asked:
<<my AGI will fall somewhere b/t 100-110k this year.I receive contributions through a money purchase pension plan @ work(15%of my base salery).Am I eligible for an IRA and if so,which one is best suited for me.Also,so far this year I have no deductions.Any suggestions for the new tax year?>>
You are eligible for a nondeductible IRA only. If you're eligible, then a Roth is better than a traditional IRA when using nondeductible dollars because ultimately all comes out tax-free. With a nondeductible traditional IRA, all earnings will be taxed at ordinary rates in effect when those earnings are withdrawn.
A single filer may contribute $2K to a Roth when AGI is $90K or less; a partial contribution is allowed when AGI is between $90K and $110K; nothing is allowed when AGI exceeds $110K. If your AGI is too high for a Roth, though, you may still make a $2K nondeductible contribution to a traditional IRA. For a couple filing a joint return, the applicable Roth AGI phase-out range is $150K to $160K. See IRS Publication 590 (Individual Retirement Arrangements) for details. Download it at www.irs.gov .
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