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Financial Planning / Tax Strategies
|Subject: Re: Roth and the wage limits again.||Date: 1/13/1999 10:39 AM|
|Author: piz||Number: 8335 of 122324|
piz Date: 1/13/99 10:14 AM Number: 8332
It's very easy to be eligible to make Roth contributions but not to make traditional IRA contributions. Be careful here - check your AGI and be aware of the other rules that limit or eliminate your contribution amount.
I believe anybody with $2000 or more of income can contribute $2000 to a traditional IRA. I think you are warning that it may not be tax deductible.
Yes. I should have put the word "deductible" in there:
It's very easy to be eligible to make Roth contributions but not to make deductible traditional IRA contributions.
But the growth will still be tax deferred. I think it makes good sense even if you can't deduct it.
Depends on your situation. If you're eligible to make Roth contributions that's better than making non-deductible contributions to a traditional IRA. If you're eligible for neither then I think your only option is the latter. Other variables come into play as well, but in the broadest sense I agree with you.
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