UnThreaded | Threaded | Whole Thread (2) | Ignore Thread Prev | Next
Author: TMFPixy Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75690  
Subject: Re: IRA, 401(k), 403(b), yikes! Date: 2/19/1998 4:26 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
BostonBear,

<<I contribute to a 401(k). Up until now I thought that I could *not* contribute to an IRA at the same time because I was already contributing to a retirement account. At least, if I did contribute to an IRA I couldn't deduct that contribution on my taxes. The new ROTH IRA complicates this but... Can I contribute to an IRA and deduct it on my taxes? Can I contribute to a ROTH IRA? I mean, contribute while I'm still socking money into my 401(k).>>

You can always contribute up to $2K to some type of IRA regardless of income and regardless of coverage under an employer's retirement plan.

To deduct your contribution to a regular IRA, your AGI must be below $30K if single and $50K if married. Between $30K and $40K (single) or $50K and $60K (joint), part of your contribution is deductible. Above those upper limits, nothing is deductible, but you can still contribute to an IRA.

The only other restriction is on the Roth IRA. You begin to lose the ability to contribute atan AGI of $95K (single) and $150K (joint). It's gone at $110K (single) and $160K (joint). Nevertheless, you can still go back to the nondeductible regular IRA at that point.

See IRS Pub 590, Individual Retirement Arrangements, for details.

Regards....Pixy
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (2) | Ignore Thread Prev | Next

Announcements

The Retire Early Home Page
Discussion on accelerating retirement day.
Managing Your Wealth
Our own TMFHockeypop from Rule Your Retirement fame on the TV show Managing Your Wealth.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Value Hounds

Back to the Future Buffalo Wild Wings
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement