UnThreaded | Threaded | Whole Thread (5) | Ignore Thread Prev Thread | Prev | Next | Next Thread
Author: AJKaplan Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 74759  
Subject: What else is new...IRA vs Roth Date: 12/7/1999 12:51 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
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
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (5) | Ignore Thread Prev Thread | Prev | Next | Next Thread

Announcements

The Retire Early Home Page
Discussion on accelerating retirement day.
2013 Feste Award Voting Begins!
Who will win the 2013 Feste Award? Vote now for the Fool that most exemplifies the Fool Community mission of Learning Together!
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:
Tax Strategies

TMFPMarti-Feeling Good
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 "#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