Mar 18

Last year my income went over the limit of Roth IRA, so I wanted to open a Traditional IRA account, while keeping the Roth at the same time. Is it OK to do that? Can I contribute to the Roth account while having Traditional IRA? Thank you in advance.


4 comments so far...

  • AM-NM centaur Said on March 18th, 2010 at 7:53 pm:

    Mix and match as you like but do not exceed the contribution limits. I believe the 2008 contribution limit is $5,000 (combined). The amount may be decreased based on your income level. Consult a qualified tax specialist.

  • narsaw Said on March 18th, 2010 at 8:14 pm:

    Yes you can. You will be able to contribute to the ROTH IRA if your AGI is 95K single or 150K married. If your income goes above those limits you will not be able to contribute to this IRA. You can however, still hold onto it and when your income drops again you can being to contribute again.

  • Kiran C Said on March 18th, 2010 at 8:27 pm:

    You should be able to have both but I thing you can contribute to one at a time. If you contribute to a Roth and your income is too high, IRS allows you to withdraw before the dealline. Check out the IRS website, http://www.irs.gov.

  • zygote222 Said on March 18th, 2010 at 9:24 pm:

    That’s correct. The income limits may prevent you from making additional contributions to an existing Roth IRA, but that doesn’t prevent you from keeping the Roth IRA and making your new contributions to a traditional IRA.

    Furthermore, the income limits for converting a traditional IRA to a Roth IRA are scheduled to end in 2010. If you make regular contributions to a traditional IRA for tax years 2007, 2008 and 2009, then in 2010 you will be able to roll your traditional IRA into your Roth IRA – in effect doing an end-run around the income limits on contributions.

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