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IRA Limitations

Old 04-15-2008, 02:11 PM
  #1  
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Default IRA Limitations

Maybe all of you know this but my tax man broke the news today. Individuals covered by a pension may not qualify for either type of IRA - there are yearly income limits. So you can keep contributing after you retire and before age 69, BUT not if your income exceeds certain levels and you are covered by another pension plan.

Submitted in the FYI catgory so no-one makes the same mistake next year I did this. (really no big deal I just have to move the $$ to a different type account, I hope).

Anyway - the good news - THE TAXES ARE DONE and the damage is minimal (shhhh...I doubled my wife's witholding last year)! Now can I have my $600. please?....
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Old 04-16-2008, 03:39 AM
  #2  
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Default RE: IRA Limitations

Just max out your 401 K plan
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Old 04-16-2008, 08:22 AM
  #3  
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Default RE: IRA Limitations

You can still contribute to a traditional IRA, you just can't deduct it.

Account continues to grow tax deferred. The hard part is you need to keep track of all your non-deductible contributions. When you do withdraw money a portion is not taxable based on the ratio of non-deductible contributions to the account value at the time of the withdrawl.
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Old 04-16-2008, 09:02 AM
  #4  
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Default Re: IRA Limitations

Further information. In 2010 you will be able to convert a traditional IRA to a Roth IRA without any income limits. My traditional IRA contributations have been post tax so during the conversion I only have to pay tax on the gains.
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Old 04-16-2008, 06:17 PM
  #5  
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Default RE: IRA Limitations

mahi231 - 4/16/2008 11:22 AM

You can still contribute to a traditional IRA, you just can't deduct it.

Account continues to grow tax deferred. The hard part is you need to keep track of all your non-deductible contributions. When you do withdraw money a portion is not taxable based on the ratio of non-deductible contributions to the account value at the time of the withdrawl.
I just found that out last week.... That's total BS..
Then I learn, we won't be getting the check either

Now,
I guess wal-mart is going to miss out on "spending my check money" too.
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