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 76421  
Subject: Re: New Fool has Retirement Questions Date: 8/8/1999 10:58 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
Greetings, Sabre, and welcome. You asked:

<<I max out my SEP IRA every year..

Can I still contribute to my IRA?
Can I establish a ROTH IRA?
Can my wife (she is unemployed) establish/contribute to an IRA? >>


Yes, you may make a contribution to an IRA despite your SEP. That contribution may or may not be deductible based on your joint Adjusted Gross Income. If the AGI is more than $61K, it will not be deductible. If it's $51K or less, it will be fully deductible. Between those amounts, it's partially deductible. If not deductible, then almost assuredly a Roth IRA will be a better choice. You may use a Roth until your AGI reaches $160K.

Your wife may make a fully deductible IRA contribution based on your earnings until your joint AGI reaches $150K. Between $150K and $160K, deductibility phases out. At more than $160K, she may still use a nondeductible traditional IRA.

For full details on IRAs, see the IRA discussion in my Foolish Retirement Plan Primer at http://www.fool.com/Retirement/Retirement.htm and in our IRA area at http://www.fool.com/Money/AllAboutIRAs/AllAboutIRAs.htm.

<<I do not like the fact that annuitys are taxed at the ordinary income rate, but I believe establishing one is a good idea nevertheless..is it? I am considering Vanguard...>>

That's a decision for you to make based on your goals and desires. For a Foolish take on annuities, see my post on this board at http://boards.fool.com/registered/Message.asp?id=1040013002967001&sort=postdate.

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.
Foolanthropy 2014!
By working with young, first-time moms, Nurse-Family Partnership is able to truly change lives – for generations to come.
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:
Macro Economics

Looking at Currency Ratios
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