http://www.iraroth.net IRA Questions and Answers Tue, 17 Jan 2012 00:09:43 +0000 en hourly 1 http://wordpress.org/?v=3.3.1 http://www.iraroth.net/2010/04/would-it-be-a-good-idea-to-set-up-a-traditional-ira-for-tax-deductions-i-need-this-year-and-a-roth-later/ http://www.iraroth.net/2010/04/would-it-be-a-good-idea-to-set-up-a-traditional-ira-for-tax-deductions-i-need-this-year-and-a-roth-later/#comments Tue, 20 Apr 2010 20:19:11 +0000 admin http://www.iraroth.net/2010/04/would-it-be-a-good-idea-to-set-up-a-traditional-ira-for-tax-deductions-i-need-this-year-and-a-roth-later/ My consulting business did well enough this year that I had a bit of money due to the IRS. I planned on setting up an IRA this year since I’m in my mid-twenties. I like the tax-free potential of the Roth, but I also need to lower my AGI this year. Would it make sense to open and contribute a portion of my wages to a traditional account and deduct what I need to break even on taxes, and throw the rest into a Roth account? Not exceeding the $4,000 limit on contributions of course… The fees on the accounts should be negligable, considering that I’m working primarily with an Internet broker.
25% is my current tax bracket.

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