This board has been migrated to our new platform! Check out the new home page at discussion.fool.com or click below to go directly to the new Board on the new site.
Greetings, Ann Marie, and welcome. You wrote:<<I will have qualifying w-2 and 1099 income this year. I do not have a current retirement plan.I want to set up a SEP, a qualified IRA, and a non-deductible ROTH. Can I do this?>>Yes, but with some caveats. The SEP-IRA can be used to contribute up to an effective 13.0435% of your comensation or $24K, whichever is less. You may also contribute to either or both a traditional IRA or a Roth IRA. The contribution to a traditional IRA may or may not be deductible depending on your filing status and adjusted gross income. (See our IRA area at http://www.fool.com/Money/AllAboutIRAs/AllAboutIRAs.htm for these limits.) A contribution to a Roth depends on your filing status and AGI as well. If all you can make is a nondeductible contribution to an IRA because of the SEP, then the Roth is generally your best choice. If you decide to contribute to both a Roth and a traditional IRA, then you may not contribute more than $2K combined to both ($1K to each, Or $1 to one and $1,999 to the other.)<<Can I contribute to the non-deductible Roth with stocks at their original purchase basis and then trade in this account to avoid taxes for the year of the trade?>>No, you may not contribute anything but cash to an IRA, regardless if that's a Roth IRA or a traditional IRA.<<Can I over contribute to the non-deductible Roth in order to avoid paying taxes on stock sales?>>No, you may not. Excess contributions incur a 6% penalty per year each and every year until they are removed from the IRA.Regards..Pixy
Best Of |
Favorites & Replies |
My Fool |