Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (9) | Ignore Thread Prev Thread | Prev | Next | Next Thread
Author: 4aapl 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: of 121316  
Subject: IRA, Roth IRA, and SEP Date: 1/15/2014 5:00 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
This year is my first partial year as an independent contractor, and my wife restarted as one too. After some of the expenses, let's say I made $40k, my wife made $1k, and we had $75k in dividends, and a $3k allowable cap gains loss. Our AGI after a couple expenses (line 27 and 29 for SS and Health Insurance) should be in the $100-$110k range (good to be under $110k, since we'd like to stay below the child tax credit limit levels). We did not have access to add money to any 401ks this year.

What is allowable for a combination of an IRA, Roth IRA, and SEP? My first priority would be to fully fund the Roths, since it was a partial year of work and we had capital losses instead of gains. Plus after last year, anything I can put into an account that I then don't have to report is well worth the lower complexity.

If I can put $5k in both of those, am I still able to put money into either of the other venues? I haven't checked recently, but I thought there were limits on the IRA due to the Roth contribution, but could put up to ~20% of our separate paychecks into SEPs.

Thanks!
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (9) | Ignore Thread Prev Thread | Prev | Next | Next Thread

Announcements

Disclaimer:
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.
Pencils of Promise - Back to School Drive
"Pencils of Promise works with communities across the globe to build schools and create programs that provide education opportunities for children."
Post of the Day:
Value Hounds

Netflix Riles Investors
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
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.
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 "#1 Media Company to Work For" (BusinessInsider 2011)! 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.
Advertisement