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Can I max out my Roth IRA, Trad. IRA, and SIMPLE IRA?
Old 09-18-2007, 11:22 PM   #1
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Can I max out my Roth IRA, Trad. IRA, and SIMPLE IRA?

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
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Old 09-18-2007, 11:49 PM   #2
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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
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Old 09-19-2007, 05:45 AM   #3
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Traditional and Roth contributions together cannot exceed $4K (or $5K if over 50).

SIMPLE is separate and has its own limits.
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Old 09-19-2007, 11:47 AM   #4
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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.
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Old 09-19-2007, 12:58 PM   #5
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...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?
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Old 09-19-2007, 02:12 PM   #6
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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.........
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Old 09-19-2007, 03:36 PM   #7
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so then i can max my SIMPLE, and then put 4k in my roth in the same year?


thats all i needed to know
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Old 09-19-2007, 06:06 PM   #8
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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.
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Old 09-21-2007, 03:59 AM   #9
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Question: If one's taxable income is 10k can you contribute 10k to SIMPLE IRA and 5k to Roth (age > 50)?
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Roth Question...
Old 09-24-2007, 05:52 PM   #10
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Roth Question...

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?
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