UnThreaded | Threaded | Whole Thread (2) | Ignore Thread Prev Thread | Next Thread
Author: JimA759s One star, 50 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76418  
Subject: IRA contributions in 2002 Date: 2/24/2002 3:00 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
Hi,

I am wondering if I have the following correct. I'm a 54 and single and receive a salary of $40k (and have 6% deducted for the company 401k) - the new IRA limit is $3k (plus $500 for over 50) and the range for reducing the deductible contrib is $34k - $44k (at 30%) - my box 1 taxable income would be $37,600 (40 - (40*.06))=$6,400 * 30% = $1,920 allowed deductible IRA contrib plus $500 = $2,420 (all a deductible contribution to my traditional IRA). I hope I'm right so far. And I can also contrib $1,080 to my Roth IRA (not deductible). Total IRA contributions (ded and non-ded) $3,500.

Do I have this correct?

thanks,

JimA
Print the post Back To Top
Author: TMFPixy Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 33873 of 76418
Subject: Re: IRA contributions in 2002 Date: 2/24/2002 4:24 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
JimA asks:

I am wondering if I have the following correct. I'm a 54 and single and receive a salary of $40k (and have 6% deducted for the company 401k) - the new IRA limit is $3k (plus $500 for over 50) and the range for reducing the deductible contrib is $34k - $44k (at 30%) - my box 1 taxable income would be $37,600 (40 - (40*.06))=$6,400 * 30% = $1,920 allowed deductible IRA contrib plus $500 = $2,420 (all a deductible contribution to my traditional IRA). I hope I'm right so far. And I can also contrib $1,080 to my Roth IRA (not deductible). Total IRA contributions (ded and non-ded) $3,500.

Do I have this correct?


You should complete the worksheets found on pages 16 and 17 of IRS Publication 590 (Individual Retirement Arrangements) available for download at http://www.irs.ustreas.gov/forms_pubs/pubs.html. That will tell you your allowabe deductible contribution to a traditional IRA. Then complete the worksheet on page 50 of the same publication for the allowable contribution you may make to a Roth IRA.

I'd do the math for you, but you have all the pertinent numbers.

Regards..Pixy


Print the post Back To Top
UnThreaded | Threaded | Whole Thread (2) | Ignore Thread Prev Thread | Next Thread
Advertisement