2007-10-11 06:52:47 · 6 answers · asked by mk1912 1 in Business & Finance ➔ Taxes ➔ United States
Your IRA contribution (Roth and Traditional combined) is $4,000 per year ($5,000 if you are age 50 or older).
If you are married, you may establish an IRA for your spouse and make contributions, whether your spouse has earned income or not.
If your employer does not offer a 401k or similar plan, you will not be able to reduce your income by contributions to a qualified retirement plan, as it must be offered by your employer.
While there are limits to what you can put into an IRA, there are virtually no limits to what you may contribute tax-deferred. If you wish to invest for retirement in a tax-deferred investment, you can purchase an after-tax annuity. While your contributions are not deductible, all earnings are tax-deferred. All the major financial institutions have such products.
2007-10-11 07:23:34 · answer #1 · answered by ninasgramma 7 · 2⤊ 0⤋
there are self employed 401(k) plans but you won't be able to go that route since you are employed elsewhere. in 2008 the limit for IRA's is going to $5,000. also, if you are 50 or older there is a special "catch up" of $1,000 per year that you can contribute to your IRA. so if you are 50 or older you can actually go to 5k this year and 6k next year.
do you work in the non-profit sector? you may be able to go with an individual 403(b) if your employer will agree to withholding your deferrals and submitting them to a custodial institution. the 403(b) is the IRS code for the non-profit sector's 401(k) tax deferral program.
2007-10-11 07:01:50 · answer #2 · answered by John S 4 · 0⤊ 0⤋
No. By the way, Wartz is wrong, the limit on a Roth is 4000 *MINUS* the amount of your traditional contributions, so even if you had both, you could not contribute a total of more than 4000. It is *NOT* 4000 for each.
2007-10-11 07:59:21 · answer #3 · answered by StephenWeinstein 7 · 0⤊ 0⤋
There are limits on what you can save tax-deferred, but there's nothing to stop you from investing as much as you can that isn't tax deferred.
2007-10-11 07:18:34 · answer #4 · answered by Judy 7 · 0⤊ 1⤋
you invest in savings onds which are tax deferred or municipal bonds -tax free or realestate-rental income plus deferred capital gains
2007-10-11 08:06:35 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Regular IRA and a Roth
2007-10-11 06:55:50 · answer #6 · answered by Anonymous · 0⤊ 5⤋