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URL:  http://boards.fool.com/to-ira-or-not-to-ira-14315386.aspx

Subject:  To IRA or not to IRA Date:  2/9/2001  7:15 PM
Author:  cherukan Number:  46084 of 121585

I recently found that I am not eligible to make a deductible contribution to my traditional IRA because my employer has a 401k account ( to which I started contributing from Dec 15, 2000 ). Now what do I do with the $1000 that I already sent my IRA broker this year towards last year's contribution ? Should I take it back? The stock that money bought has fallen in value since I put it in, so withdrawing would set me back by about $200 and also how does one compute the withdrawal amount?

If suppose I dont withdraw it, I understand it would be called a non-deductible contribution. Can I mix deductibe and non-deductible contributions in the same IRA account ? How does one calculate the tax when the money is finally withdraw at age 59 1/2?

Last question, I found that I can make a *deductible* contribution to my non-working spouse's IRA. Well, thats good, but I cant cough up the money within this short time frame, can I transfer my excess non-deductible contribution of $1000 from my IRA to my wife's IRA . What are the tax implications? Is it going to complicate the paperwork next year?

Thanks for your answers!
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