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.
I have already contributed $4,000 to my Roth IRA at Vanguard for 2006. I was on the site to make a $1,000 contribution to my Traditional IRA, and the site said I’ve already made my maximum allowed contributions. I haven’t contributed anything to my Traditional Roth this year.
I was under the impression I could contribute $4k each to a Roth and a Traditional IRA each year. Am I wrong?
A second question. I still have a 401K with a former employer. Can I contribute money into that still?
I’ve been searching online and it seems that the rule only applies to Roth IRAs or when you convert a Traditional IRA into a Roth IRA. Is there a holding period for Traditional IRAs?
Right now we each have 50 bucks a month put in to the Growth fund of america and the Capital World Growth and Income Fund…. wise allocation? or should we be doing something else
I currently have a deductible IRA.
How much should a person make before starting to think about investing in a Roth account?
My employer only allows 17% contrubition to 401K and they do not match anything right now (0%) so I will not reach the $15K limit. Anyway to help me get the max tax deferral of $15K?
End of year changes create some confusion, opportunity
The rules for investing and buying large-ticket items are changing, and local financial advisers and tax consultants are working hard to get their clients “in the know.”
Read more on Monticello Times
We recently got a new 401K and need to decide our allocation mix between large caps, foreign and bonds. Not sure if I should take the current economic situation into consideration or just stay the course. Thanks!
Roth ira, roth ira rules,what is roth,retirement plan roth ira 2010,roth ira qualification,what does a roth ira do,ira for minors,simple roth ira calculator
