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Investing/Strategies / Retirement Investing
|Subject: Re: Simple and Roth IRA, compatible?||Date: 8/21/1999 9:34 AM|
|Author: TMFPixy||Number: 13316 of 76907|
Greetings, Lukedds, and welcome. You asked:
<<I am in the process of setting up a Simple IRA for my corp. Can I still deposit money into my Roth IRA account along side my Simple IRA deposits?>>
Yes, you may. Your participation in the SIMPLE has no impact on your ability to contribute to a Roth IRA. The only hurdle you have to overcome is the adjusted gross income limit for making that contribution. If your AGI is l$150K or less as a joint filer ($95K or less for a single filer), then you may make a full contribution to a Roth IRA.
A secondary question would be, if you are in the 31% tax bracket would you want the $2,000 to go into the Roth or just take the short term gain of deductibility of the Simple?
I would make a maximum contribution to the SIMPLE and a Roth IRA contribution to get the maximum tax break today plus tax-free distributions from the Roth later.
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