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403(b) and IRA?
Old 07-17-2009, 12:53 AM   #1
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403(b) and IRA?

Is it possible to contribute to a 403(b) as well as an IRA? On my employer information packet it says the maximum contribution is $15,000 for a year in the 403(b). After this am I done for tax free and tax-deferred contributions or is there some small amount that can go to an IRA or a self-directed annuity?
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Old 07-17-2009, 02:19 AM   #2
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IRA and 401k Contribution Limits

not sure why your packet doesn't say 16.5K for 403b as in link above.
IRA limits in link above also. Limits for IRA and 403b do not interact.
Over age 50, additional contributions allowed.
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Old 07-17-2009, 05:50 AM   #3
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Contribute fully to both. One doesn't affect the other.
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Old 07-17-2009, 06:44 AM   #4
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Thanks for the link! I was searching all over the Internet and could not find what I was looking for.

I'm assuming the limit for a Roth IRA is also $5000? I think that my employer paperwork must be outdated. I will ask about the $16,500 amount and then max out a Roth IRA for $5,000. It is per calendar year, not by employment year, right?

I decided to go with a Roth IRA instead of traditional because my tax bracket will probably be much larger in the future and most of the money in the Roth will be generated by compounding and reinvesting so it will be a huge tax savings at withdrawal. If my income is too high in a few years I can start a regular IRA and let the Roth continue with my initial contributions.
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Old 07-17-2009, 08:08 AM   #5
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It is amazing what google can do.....here's the search page; the link above is the first entry. I find google often works better than the search feature within websites.
403b IRA contribution limits - Google Search

Roth limit is 5K but check phaseout limits on income in link. company info could be outdated....but would have to be 2006. Some of the links on the link provided are also outdated but not as much. Yes, calendar yr............if you had 2 employers in that yr, I think that does interact.
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Old 07-17-2009, 08:58 AM   #6
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I suggest starting at IRS site, and reading publication 590 at the IRS site.

For Roth, read:
2009 IRA Contribution and Deduction Limits - Effect of Modified AGI on Deduction if You Are Covered by a Retirement Plan at Work
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Old 07-17-2009, 09:50 AM   #7
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I have seen on various bank web sites that you can contribute to an IRA CD after age 70 1/2. When I go to find the details on that site I'm not able to come up with any information. Lets say I withdraw $6000 this year from my IRA CD. Am I able to replace that $6000 with a contribution at the end of the year?
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Old 07-17-2009, 10:32 AM   #8
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google "ira contribution 70" which suggests you can't contribute after if you will be
70.5 by yr end.
Tax Topics - Topic 451 Individual Retirement Arrangements (IRAs)

......but contribution implies earnings. If no earnings, can't replace unless it is rollover within 60 days of withdrawal?
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Old 07-17-2009, 01:11 PM   #9
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From Pub 590:
For 2008, the most that can be contributed to your traditional IRA generally is the smaller of the following amounts:
* $5,000 ($6,000 if you are age 50 or older), or
* Your taxable compensation (defined earlier) for the year.
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