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Subject:  Re: 401K and SEP? Date:  12/16/2007  12:20 AM
Author:  TMFPMarti Number:  60418 of 88104

Unfortunately or fortunately I cannot. I am above the max income for IRAs.

Such a number doesn't exist. If you're under 70 1/2 and have taxable compensation, you can make an IRA contribution on top of your retirement plan (401(k) and SEP) contributions. In your case it sounds like your AGI is too high for a Roth, so your only choice would be a nondeductible traditional IRA contribution. Again, see Pub 590, which it sounds like you didn't, which, while I wouldn't lie to you, means that you just accepted what some stranger told you over the ether. Not very Foolish.

That said, "can" and "should" aren't the same. Under current tax law, my preference is a regular taxable investment account holding tax-managed assets rather than a nondeductible traditional IRA contribution. If, or should I say when, they change the treatment of long-term gains, I'll revisit this opinion.

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