Can one contribute to a traditional ira and roth ira in the same tax year?

Question

adjusted gross income of 80,000.

Answer 1

The above answers are correct if you are under age 50 and you are not covered by a qualified plan from your employer. However, if you have reached age 50, you could contribute $5,000 to ROTH and regular IRAs for 2007 and $6,000 to ROTH and regular IRA's for 2008.

If you are covered by a qualified plan at work, your deduction would be limited: The deduction is phased out between $50,000 and $60,000 for single people and $75,000 to $80,000 for married people. Therefore, if you are covered by a qualified plan, you would get no deduction if you are single or one-half of the deduction if you are married.

Hope that helps.

Jim Kirby, CPA

Answer 2

to respond to your 2d question first...NO you won't make contributions to a 401k with a former employer. you ought to to roll it into your Roth or classic IRA. you're purely allowed to make contributions $4000 each and each year in finished to the two form of IRA or a mixture of the two say $3000 to the Roth and $one thousand to the classic. while you're self employed or have self employment earnings get a SEP IRA the contribution limits are lots bigger and that they are much less complicated that 401K's.

Answer 3

The answer is yes you can, but the combined contributions for both IRA plans can't exceed the maximum IRA contribution limit for your AGI. The AGI that you listed, you can invest the max for 2007 of $4,000.

Answer 4

Yes, but for 2007 you are limited to $4000 total between them. The amount for 2008 is $5000.