if I have a 401k at work can I contribute to a NON-deductible traditional IRA also. I can't do the Roth because of my income.
2007-07-16 11:09:07 · 4 answers · asked by Bill R 7 in Business & Finance ➔ Personal Finance
teresa is wrong.
You can put $15,000 in a 401k AND still put $4000 in the IRA .
And yes, teresa, there are restrictions on Roth IRA's. You cannot contribute to a Roth if you make over a certain amount.
Once MAGI hits the top of the range, no contribution is allowed at all. The ranges, for 2007, are:
* Single filers: Up to $99,000 (to qualify for a full contribution); $99,000-$114,000 (to be eligible for a partial contribution)
* Joint filers: Up to $156,000 (to qualify for a full contribution); $156,000-$166,000 (to be eligible for a partial contribution)
* Married filing separately (if the couple lived together for any part of the year): $0 (to qualify for a full contribution); $0-$10,000 (to be eligible for a partial contribution).
2007-07-16 11:41:59 · answer #1 · answered by mister_galager 5 · 1⤊ 0⤋
Yes, but you can only contribute up to $4000/year unless you are over 50 then you can contribute another $1000 for a "catch up." If you are trying to shelter more taxes than that though (which is the only reason someone would not go for a Roth IRA because it is a much more flexible instrument than a traditional IRA) you may want to check into a trust or annuity.
2007-07-16 18:55:51 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Yes, you can do a 401k and an IRA, but the maximum amount you can contribute applies for both. So, for example, if the current cap is at $15,000 per person per year, you can't put $15,000 in each account; you'd have to split that between the two.
I wasn't aware of any income restriction on the Roth IRA. Was that just at one bank, or have you noticed that at other financial institutions?
2007-07-16 18:20:49 · answer #3 · answered by teresathegreat 7 · 0⤊ 2⤋
Yes, you should have no problem. The only concern is the tax treatment of your contributions. You should consult a tax specialist.
Tax issues aside, the best thing to do is MAX your 401k, if you still have a lot of disposable income after that, MAX your IRA, if you still have disposable income after that, payoff your credit cards and anyother significant debt you have.
2007-07-16 18:18:46 · answer #4 · answered by Kostas C 2 · 0⤊ 0⤋