No. of Recommendations: 0
I currently have an IRA, an SEP-IRA (although they are both in one account, and I'm not clear on why they are not separated) and my husband will get a 401(k) in Jan. Can we also do a Roth IRA? I am also thinking about starting a ROTH IRA for my 11 year old son as a savings plan (NO passbook). What tax rate is he taxed at? Should I put it in my name?
Print the post Back To Top
No. of Recommendations: 0
lynndachisen writes:

I currently have an IRA, an SEP-IRA (although they are both in one account, and I'm not clear on why they are not separated) and my husband will get a 401(k) in Jan. Can we also do a Roth IRA? I am also thinking about starting a ROTH IRA for my 11 year old son as a savings plan (NO passbook). What tax rate is he taxed at? Should I put it in my name?

I reply:

If you can contribute to a traditional IRA, you can contribute to a Roth IRA. You merely need to be sure that you never contribute more than $2000 to the two of them combined in any tax year. However, in order to contribute to an IRA, you must have earned income -- at least as much as your contribution. Thus, unless your son works, you cannot establish a Roth IRA in his name. --Bob
Print the post Back To Top
No. of Recommendations: 0
Bob78164 wrote: "If you can contribute to a traditional IRA, you can contribute to a Roth IRA."

I beg to differ. There are upper income limits to Roth IRA eligibility; as I understand the regular IRA rules, there are no upper income limits to making contributions, but there are limits that may effect deductability of the contributions.

Just my $0.02. Regards, JAFO
Print the post Back To Top
No. of Recommendations: 0
JAFO31 writes:

There are upper income limits to Roth IRA eligibility; as I understand the regular IRA rules, there are no upper income limits to making contributions, but there are limits that may effect deductability of the contributions.

I reply:

Thanks, JAFO31. I don't know what I was thinking! If the original poster has a modified AGI in excess of the $150,000-$160,000 phase-out range, then her only option is a traditional IRA. --Bob
Print the post Back To Top
Advertisement