UnThreaded | Threaded | Whole Thread (3) | 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 76078  
Subject: Re: Simple Plan/ Rollover Date: 1/14/2001 2:19 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
Greetings, Jeff, and welcome. You asked:

I have recently rolled over my 401k to a self directed IRA. I have also recently enrolled in my employers simple plan. Unfortunatly my advisor cannot anser any of my questions. She can only tell me exactly where she wants me to put MY money.

My questions are as follows.
1. Can I make contributions to both accounts during 2001?
2. What are the details . Such as contrbution amounts and taxes?


Yes, you may make contributions to both your rollover IRA and to your SIMPLE in the same year. However, any contribution to your rollover IRA will probably not be deductible due to your participation in the SIMPLE. Also, doing so will forever make that money ineligible for a transfer to a new employer's 401k plan assuming you wished to do that in the future. Therefore, you will probably be far better served by making a contribution to a Roth IRA. If you contribution is nondeductible, then that's a better route to go. Also, it preserves your ability to later transfer the rollover money to a new employer's plan.

You may contribute up to the smaller of 100% of your pay or $6,000 per year to the SIMPLE. In the IRA you may contribute $2,000 to an IRA or your earned income, whichever is less.

For more on IRAs and SIMPLEs, see our Foolish Retirement Plan Primer at http://www.fool.com/Retirement/RetirementPlanPrimer.htm and/or our IRA area at http://www.fool.com/money/allaboutiras/allaboutiras.htm.

Regards..Pixy
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (3) | Ignore Thread Prev | Next

Announcements

The Retire Early Home Page
Discussion on accelerating retirement day.
Pencils of Promise - Back to School Drive
"Pencils of Promise works with communities across the globe to build schools and create programs that provide education opportunities for children."
Post of the Day:
Value Hounds

Netflix Riles Investors
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 "#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