Discussion:Traditional AND Roth IRA
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Discussion Forum Index --> Tax Questions --> Traditional AND Roth IRA
Kaboom3757 (talk|edits) said: | 1 January 2006 |
| Can you contribute to a Traditional AND Roth IRA??
Can you contribute the max to both...lets say $4000 to Traditional AND $4000 to Roth?? If not, what would happen if you did? And, i always wanted to know...what happens if you contirbute more than your maximums. thanks!! | |
| 2 January 2006 | |
| IRAs are one of the items which are comprehensively covered in a single IRS publication.
I recommend curling up with a copy of Pub 590, which you can view as HTML or download as PDF. Then I'll bet you'll be able to report back here with the answers to your questions. | |
| 3 January 2006 | |
| The correct answer is that the combined limit for someone with both types of accounts is $4,000 for a taxpayer under the age of 50. However, the excise tax for excess contributons is 6%. | |
| 4 January 2006 | |
| You can contribute to both a traditional and a roth ira within the maximum allowed, of $4000 a portion to each, but within the allowed MAGI limits for each. | |
Www.cpa1.biz (talk|edits) said: | 5 April 2007 |
| Do you have a lot of clients that you tell to contribute to both so they will not have excess contributions and just to contribute to something? | |
| 5 April 2007 | |
| I've gone through Pub 590 and I am unclear when the deposit deadline for contributing to a traditional IRA is. Pub 590 states April 17th not including extensions. Is this to be understood that if a taxpayer files an extension, they have until the extension due date to contribute and deduct a 2006 contribution? | |
Www.cpa1.biz (talk|edits) said: | 5 April 2007 |
| We were going over this but the deadline for an IRA is April 17, 07 | |
| 5 April 2007 | |
| I have a client who funded 401(k) $15000. AGI $200,000
Now wants to put $4000. into a non-deductible traditional IRA. Can this be done? What are the ups and downs. | |
| 5 April 2007 | |
| Yes, if ND; the benefit is earnings accrue each year tax-free until withdrawn. Small benefit, but better than nothing. | |
| 10 April 2007 | |
| Can someone put $4,000 in Roth IRA (their AGI is below $150K), AND $4,000 in non-deductible IRA? | |
| 10 April 2007 | |
| Rajarora:
I think if you look in Pub 590 you find the answer. As a hint - The maximum you can put into an IRA is $4,000 per year ($5,000 if you are over 50). Dusty PS: Notice I did not say $4,000 per Traditional or $4,000 per Roth or $4,00 for non-deductible | |
