No. of Recommendations: 0
Well, mildly confused. I am self-employed (not incorporated) with a tax id.

1) My AGI for 2006 will be above the limit for a Roth IRA contribution. I understand that I may make the maximum SEP IRA contribution of 44K. I was told my wife and I, each in our 50's, can also contribute 5K each to a non-Roth IRA.

Suppose we do that, and that by retirement age each of our investment doubles to 10K, and we each cash out at that point. Since the 10K investment was after tax do we only pay tax on the appreciation? If so how do we indicate that?

2) This one regards transfers rather than contributions. I have SEP IRA's, a Roth IRA, and conventional (non-Roth) IRA's. I know I may only make contributions within limits, and only to the SEP, but may I freely transfer between the SEP and conventional IRA's?

3) The statements I have received for the SEP show both employer and participant contributions, which are one and the same person in my case. Does this matter in the least? If I contribute 44K this year does it matter how the custodian characterizes the contributions, e.g. 20 as employer and 24 as participant.
Print the post  

Announcements

The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
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.
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 Glassdoor #1 Company to Work For 2015! 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