Comments on: Are there any limitations to my contributions annually if I have a 401k, IRAs, Roth IRAs? http://www.iraroth.net/2010/02/are-there-any-limitations-to-my-contributions-annually-if-i-have-a-401k-iras-roth-iras/ IRA Questions and Answers Thu, 20 Oct 2011 14:36:38 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: fawkesphoenix http://www.iraroth.net/2010/02/are-there-any-limitations-to-my-contributions-annually-if-i-have-a-401k-iras-roth-iras/comment-page-1/#comment-520 fawkesphoenix Sat, 06 Feb 2010 14:06:05 +0000 http://www.iraroth.net/2010/02/are-there-any-limitations-to-my-contributions-annually-if-i-have-a-401k-iras-roth-iras/#comment-520 The IRA limit is $4000 for this year, $5000 for next year for people under the age of 50 (and $5000 and $6000 respectively if you are 51 and up.) The salary cut-off determines if you are elligible for a Roth IRA- you can get one if you make less than $114,000 single, $166,000 for married filing jointly. Anyone can set up a regular IRA, but you may not be elligible to take a tax deduction on your contributions. Here are some basics: -if you don't have a 401(k) you can deduct your IRA contribution no matter what -if you are single and do have a 401(k) at work, you can only take the deduction if you make less than $60,000 per year Now, that is for people who are single- if you have a spouse, it will depend on whether or not they are offered a retirement plan (are we confused yet?) for the tax write-off. There is a new law going into effect in 2010 that will let you convert a regular IRA to a Roth IRA- you would have to pay tax on your initial investment if you wrote it off before, which is a bummer, but you would have the awesome tax savings of a Roth IRA. So that is something to think about in a few years! The contribution limit for 2007 for 401(k)'s is $15,500 if you are younger than 50 and $20,500 if you are older than 50. Nothing prevents you from fully funding both an IRA and a 401(k). I hope that helps! The IRA limit is $4000 for this year, $5000 for next year for people under the age of 50 (and $5000 and $6000 respectively if you are 51 and up.) The salary cut-off determines if you are elligible for a Roth IRA- you can get one if you make less than $114,000 single, $166,000 for married filing jointly. Anyone can set up a regular IRA, but you may not be elligible to take a tax deduction on your contributions. Here are some basics:

-if you don’t have a 401(k) you can deduct your IRA contribution no matter what
-if you are single and do have a 401(k) at work, you can only take the deduction if you make less than $60,000 per year

Now, that is for people who are single- if you have a spouse, it will depend on whether or not they are offered a retirement plan (are we confused yet?) for the tax write-off.

There is a new law going into effect in 2010 that will let you convert a regular IRA to a Roth IRA- you would have to pay tax on your initial investment if you wrote it off before, which is a bummer, but you would have the awesome tax savings of a Roth IRA. So that is something to think about in a few years!

The contribution limit for 2007 for 401(k)’s is $15,500 if you are younger than 50 and $20,500 if you are older than 50. Nothing prevents you from fully funding both an IRA and a 401(k).

I hope that helps!

]]>