Adjusted Gross Income Roth Ira
Question: Which of the following reduce an individuals adjusted gross income, Traditional IRA or Roth IRA, both or none?
I know or at least am certain the Traditional IRA correct but I am not sure if the Roth would be.
Thank you to everyone.Answer: only the traditional
Deficit Moves: Work Longer, Fund A Roth And Avoid Long-Term Bonds
Washington is dithering over the deficit, but you can’t afford to. Work longer, fund a Roth and steer clear of long-term bonds.
Contribution Limits for ROTH 401K/IRA or Traditional 401K/IRA
Adjusted Gross Income Ira
Question: If my adjusted gross income is less than $85,000 may I fund my 401(k) and my IRA to the max allowable?
401(k)-$15,500, plus $5,000 makeup for 2008, plus $6,000 contribution to IRA for 2008, which is $5,000 contribution, plus $1,000 makeup, for a total contribution of $26,500, plus an additional $6,000 for my non-working spouse into his IRA account
Answer: Yes, you can fund your 401(k) to the max. You may also fund your IRA to the max but it will not be deductible at your income level – but it is still allowable. But since it would not be deductible, it would probably be smarter to fund a Roth IRA which is allowed at your income level. And yes, you can max out both an IRA and a 401(k).
More help on converting regular IRAs to Roths
Readers had some good questions in response to my Sunday column on converting a regular individual retirement account into a Roth IRA. To recap: Starting this year, anyone can convert all or some of their regular IRAs into a Roth regardless of their income… Roth IRA – Individual Retirement Account – Retirement – Personal Finance – Tax
Adjusted Gross Income Roth
Question: I am over the limit to contribute to a Roth IRA. How do I fix it?
I just realized that my modified adjusted gross income in both 2005 and 2006 was too high for me to contribute to a Roth IRA. Is there anyway to fix it? What do I owe the IRS?
Answer: Can still pull out 2006 if do it by 4/17 so tight. Penalty is owed if don’t. Can move to regular IRA though can’t deduct if have pension plan.
Turn your nest egg into a Roth?
For people thinking about converting their traditional IRAs, there are both pluses and minuses to consider