Message Font: Serif | Sans-Serif
UnThreaded | Threaded | Whole Thread (4) | Ignore Thread Prev | Next
Author: tettnanger Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 123510  
Subject: IRA - Contribution Confusion Date: 4/17/2000 11:20 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
Hello, I'm just starting to realize that I should be contributing to an IRA(s), and I've read the Fool documents on IRAs, but there's a question I need clarified.

My background is I'm 28, married w/one young child, my wife doesn't work, I contribute the full amount to my company's 401k, and I make around 100K but less than 150K.

When I read the Fool stuff, I was under the impression that I can make a maximum contribution of $2000 to an IRA per year, my wife can do the same, and we could make a maximum contribution of $500/year to an Education IRA for my son. I thought it was pretty clear.

I was then discussing it with a coworker and he said that the $2000 limit was only for DEDUCTIBLE contributions and that there was not really a limit for the amount I can contribute to these IRAs. I also gathered, from what I read, that because of my 401k and salary, that I couldn't make DEDUCTIBLE contributions. If that's the case can I just make any amount of contribution I want to a Roth and/or Education IRA without limits? That would mean I could funnel any amount of money to a Roth IRA, let it build tax-free, and withdraw it tax-free. This doesn't sound right, it sounds too good to be true. Or, is my coworker correct about traditional IRAs, but not Roths?

It just wasn't clear to me in the Fool IRA section.

Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (4) | Ignore Thread Prev | Next


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
Foolanthropy 2015!
Fistula Foundation: A World of Good!
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:
Berkshire Hathaway

Collected Mungofitch Quotes
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 Glassdoor #1 Company to Work For 2015! 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.