I am new to investing and have a question re IRAs. I am employed full time and have a 401k thru my employer. I opened a ROTH IRA in 2001 and have about $400 in it. Is it a good idea to also open a traditional IRA before Apr 15 to which I would contribute the max? I am over 55 years. Reason I want to open a traditional IRA is to reduce my taxes for 2001. Thanks.
mes94104,The "Retirement" board is kind of dead. There's a lot more activity on the "Retirement Investing" board here: http://boards.fool.com/Messages.asp?bid=100154To answer your question: Since you work full-time and benefit from your employer's retirement plan, you may not be eligible to deduct any of the contributions you make to a traditional IRA. If you are filing as "single", your modified adjusted gross income must be less than $30,000 in order for the IRA contribution to be deductible. If your MAGI is between $30,000 and $40,000 , only part of your IRA contribution will be deductible. If your MAGI is above $40,000 then contributing to a Traditional IRA will not give you any tax savings.If you're Married Filing Jointly, add $20,000 to the above figures.See http://invest-faq.com/articles/ret-plan-trad-ira.html for more information.
The "Retirement" board is kind of dead. There's a lot more activity on the "Retirement Investing" board here: http://boards.fool.com/Messages.asp?bid=100154I agree. There's more info to be had over there.rerics