Can I max out my Roth IRA, Trad. IRA, and SIMPLE IRA?

[thefed]

this seems so elementary, but ive never been in a position to contribute to my limits.

i currently have a roth and trad. ira. i have only ever maxed out the roth and the traditional just sits with rollover $$ from my job


are each one;s limits stand-alone, or combined? ie can i max each one out individually, or does each one's limit depend on the others contributions thus far

how about a simple ira i planned on setting up for my business? stand-alone limits or combined?

thanks

[thefed]

i guess my main question is if the simple ira's limits stand alone or not, im pretty sure ive got the roth vs traditional thing right

[gindie]

Traditional and Roth contributions together cannot exceed $4K (or $5K if over 50).

SIMPLE is separate and has its own limits.

[FinanceDude]

SIMPLE IRA is in effect a type of qualified plan so you should max it out, and take the match.

You can use a combination of Roth and Tradiitonal to fund, but you cannot fund both to the limits.

My general advice is to fund the Roth unless you get a deduction for doing a traditional IRA.

[retire@40]

Quote:

Originally Posted by FinanceDude ...My general advice is to fund the Roth unless you get a deduction for doing a traditional IRA.

What if you can get a deduction, but you are in the 10% bracket now. Would you still recommend a traditional over a Roth?

[FinanceDude]

Quote:

Originally Posted by retire@40 What if you can get a deduction, but you are in the 10% bracket now. Would you still recommend a traditional over a Roth?

I still like the Roth, because I believe individual tax rates will be higher in the future. I think the pendulum will swing back from lower marginal rates to higher marginal rates............

I do wish the Roth had no AGI limits, that seems stupid. I suppose it was the only way for Senator Roth to get his bill passed.........

[thefed]

so then i can max my SIMPLE, and then put 4k in my roth in the same year?


thats all i needed to know

[JustCurious]

Quote:

Originally Posted by thefed so then i can max my SIMPLE, and then put 4k in my roth in the same year? thats all i needed to know

Yes, assuming your income is below the limit to qualify for a Roth.

[ferco]

Question: If one's taxable income is 10k can you contribute 10k to SIMPLE IRA and 5k to Roth (age > 50)?

[Elite59]

I deposited 4,000. into my Roth IRA, in 2006. I still haven't filed my 06' returns & have to do so before 10/15/07. I have been told by my accountant that I was not allowed to invest 4K into the Roth account, because I made too much money. What should I do at this point? Can I take the money out of the account? Will I be penalized?