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Financial Planning / Tax Strategies


Subject:  Re: Oh, shoot! We're too successful. Date:  2/25/2014  3:39 PM
Author:  JAFO31 Number:  120227 of 127546

sharleen: "Our overall income is too high to add anything to our IRAs or other protected accounts."

I a mnot a tax pro, but I wonder about the accuracy of that statement.

"If you (or your spouse) earn taxable income and are under age 70 ½, you can contribute."

There is no income bar to contribution to a traditional IRA, though not all contributions may be deductible.

Also, I do not believe that there is an income limit that is an absolute bar to contributing to a 401-k, though if one is an HCE, then the amount that may be contributed annually may be capped below the otherwise lawful amount.

If you are self-employeed, then I beleive that you have other options that would be available to, though I have never much reviewed them.

Regards, JAFO
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