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Author: lynndachisen Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 74759  
Subject: how many retirement plans can one have? Date: 8/5/1999 10:05 PM
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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?
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Author: Bob78164 Big red star, 1000 posts Old School Fool CAPS All Star Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 12872 of 74759
Subject: Re: how many retirement plans can one have? Date: 8/5/1999 10:49 PM
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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

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Author: JAFO31 Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 12875 of 74759
Subject: Re: how many retirement plans can one have? Date: 8/5/1999 11:31 PM
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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


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Author: Bob78164 Big red star, 1000 posts Old School Fool CAPS All Star Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 12895 of 74759
Subject: Re: how many retirement plans can one have? Date: 8/6/1999 1:08 PM
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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

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