No. of Recommendations: 0
Dear Fools,

I will be opening an IRA for the first time. My gross, non-adjusted income this past year was $70,000. I know I'm elegible to open a Roth, but next year, my gross non-adjusted income jumps to $110,000, which makes me eligible to contribute to a Roth only partially. The $110,000 salary will continue for 2 years and then take a dip to about $80,000.

Since at none of the above income levels am I able to use a traditional IRA to deduct the $2000 contribution, I assume it will be best for me to start a Roth, but then since I become ineligible for a complete Roth (at $110,000), I will have to do a partial contribution to my Roth and start a traditional with the remainder of the money to reach the $2000 contribution for the year. Ultimately my salary goes back down, making a full contribution to a Roth possible again.

Does it make sense for me to have 2 IRA's like that?
What are the pro's and con's?
Is this so compliated that you would suggest I have a traditional IRA only?

Thanks for your time and expertise,
Foolishly yours,
AJ
Print the post  

Announcements

The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
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 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.
Advertisement