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Author: mhtyler Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121061  
Subject: CANT contribute to IRA? Date: 11/2/2003 11:51 AM
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Here I am, retired with extra income, and I am apparently not allowed to contribut to my IRA.

Is there any good strategy to allow me to do that, short of getting a bloody job?

It seems unfair that I don't get to defer a small amount of income just because I'm not working.

ideas?
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Author: TMFDj111 Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 67404 of 121061
Subject: Re: CANT contribute to IRA? Date: 11/2/2003 1:19 PM
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Here I am, retired with extra income, and I am apparently not allowed to contribut to my IRA.

To contribute to an IRA you must have earned income. Earned income is reported on a W-2 (salary and wages), Schedule C (business income), or Schedule F (farm income).

Is there any good strategy to allow me to do that, short of getting a bloody job?

In your circumstances, you should do your investing in non-retirement accounts. One of the drawbacks of retirement accounts is they turn capital gains and dividends into ordinary income. With non-retirement accounts, your capital gains and sometimes your dividends are taxed at a lower rate than ordinary income.

It seems unfair that I don't get to defer a small amount of income just because I'm not working.

Perhaps you should discuss your observations with your elected representatives in Wash DC. You can get their names and contact information from these two web sites:
http://www.house.gov/
http://www.senate.gov/

David Jacobs
TMFDj111

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Author: inhanyt Three stars, 500 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 67424 of 121061
Subject: Re: CANT contribute to IRA? Date: 11/4/2003 6:03 AM
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One of the drawbacks of retirement accounts is they turn capital gains and dividends into ordinary income.

Conversely, if you would like a little regular interest income to prevent your retirement ship from listing to the equity side too much, an IRA is great for stuffing full of high yield debt and other investments that would normally be taxed as 'ordinary income'. Make it grow for 25 years (IIRC mhtyler is a youngish retiree) and contribute to it at $3k-$5k per year and you're talking some serious $$ on the other end. Make the takeout tax free, all the better.

IIRC, you are fairly well off mhtyler, so you may not have the need; but others may also want to pursue a little work, if their portfolios have been punished a bit, so they may be permitted to contribute to a ROTH.

I wouldn't give up on the idea. Maybe you could find some work you like doing anyway. Pretty minimal amounts to fully fund on a yearly basis.

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Author: mhtyler Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 67449 of 121061
Subject: Re: CANT contribute to IRA? Date: 11/6/2003 10:14 AM
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Interesting advice inhanyt, although I don't know what "IIRC" means??

thx,
mark

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Author: lorenzo2 Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 67451 of 121061
Subject: Re: CANT contribute to IRA? Date: 11/6/2003 10:40 AM
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Interesting advice inhanyt, although I don't know what "IIRC" means??

Internet shorthand: IIRC = if I recall correctly

There are tons of these. See, for example:

http://www.geocities.com/SouthBeach/Lagoon/9819/acronyms.html

What's more, there are a few that appear mainly on these boards.

OP = Original poster (the person who started a thread)
DW / DH = dear wife / dear husband (although occasionally they seem to mean dippy wife / dumb husband)

(I thought there was FAQ somewhere around here that expanded these acronyms, but I can't seem to find it.)

Lorenzo

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Author: geocarw Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 67454 of 121061
Subject: Re: CANT contribute to IRA? Date: 11/6/2003 6:41 PM
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There are tons of these. See, for example:...

Try this: http://www.acronymfinder.com/about.asp "The Acronym Finder is a world wide web (WWW) searchable database of more than 320,000 abbreviations and acronyms about computers, technology, telecommunications, and military"

George

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Author: mhtyler Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 67455 of 121061
Subject: Re: CANT contribute to IRA? Date: 11/7/2003 5:50 AM
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"Internet shorthand: IIRC = if I recall correctly"

I've been around the Internet SMWC (Since Meat Was Cheap), but somehow never came across that one.

thx,
mark

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