Comments on: How Many Retirement Accounts Can You Have? http://cashmoneylife.com/2008/07/16/how-many-retirement-accounts-can-you-have/ Money Management, Small Business, Career Tue, 16 Mar 2010 17:44:23 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Ryan http://cashmoneylife.com/2008/07/16/how-many-retirement-accounts-can-you-have/comment-page-1/#comment-21419 Ryan Tue, 26 Jan 2010 05:03:40 +0000 http://cashmoneylife.com/?p=757#comment-21419 Madmaxx, Each person has a different financial situation, and I cannot comment on the best course of action for you. I recommend speaking with a professional financial planner, who can help you understand the variety of investing and tax issues that your situation warrants. Madmaxx, Each person has a different financial situation, and I cannot comment on the best course of action for you. I recommend speaking with a professional financial planner, who can help you understand the variety of investing and tax issues that your situation warrants.

]]> By: Madmaxx http://cashmoneylife.com/2008/07/16/how-many-retirement-accounts-can-you-have/comment-page-1/#comment-21418 Madmaxx Tue, 26 Jan 2010 04:39:43 +0000 http://cashmoneylife.com/?p=757#comment-21418 Hello, I have a 401K a 459 plan ,pension,Roth IRA and mixed stocks and bonds. Would it be a good idea to keep my current 401K as it is and open a roth 401K and start contributing to that to save on the tax hit later on? Hello, I have a 401K a 459 plan ,pension,Roth IRA and mixed stocks and bonds. Would it be a good idea to keep my current 401K as it is and open a roth 401K and start contributing to that to save on the tax hit later on?

]]> By: Sandi http://cashmoneylife.com/2008/07/16/how-many-retirement-accounts-can-you-have/comment-page-1/#comment-21204 Sandi Mon, 11 Jan 2010 15:42:51 +0000 http://cashmoneylife.com/?p=757#comment-21204 I am 53 and retired from the Air Force a year ago. I make about $34,000 a year in retirement pay. May I contribute to an IRA using my retirement pay? I am 53 and retired from the Air Force a year ago. I make about $34,000 a year in retirement pay. May I contribute to an IRA using my retirement pay?

]]> By: Should You Rollover Your TSP Account Into an IRA? http://cashmoneylife.com/2008/07/16/how-many-retirement-accounts-can-you-have/comment-page-1/#comment-20644 Should You Rollover Your TSP Account Into an IRA? Wed, 09 Dec 2009 04:12:44 +0000 http://cashmoneylife.com/?p=757#comment-20644 [...] Additional benefits to leaving your assets in the TSP. You won’t be charged any additional fees to leave your funds in the Thrift Savings Plan (plan expenses still apply), and it won’t affect any of your other investments, or ability to open other retirement accounts. [How Many Retirement Accounts Can You Have?]. [...] [...] Additional benefits to leaving your assets in the TSP. You won’t be charged any additional fees to leave your funds in the Thrift Savings Plan (plan expenses still apply), and it won’t affect any of your other investments, or ability to open other retirement accounts. [How Many Retirement Accounts Can You Have?]. [...]

]]> By: Ryan http://cashmoneylife.com/2008/07/16/how-many-retirement-accounts-can-you-have/comment-page-1/#comment-19753 Ryan Mon, 21 Sep 2009 03:19:03 +0000 http://cashmoneylife.com/?p=757#comment-19753 That is correct, Luke. Also, Traditional and Roth IRAs have the same contribution limits and you can only contribute $5,000 to these accounts. So if you wanted you could contribute $2,500 to a Traditional IRA and $2,500 to a Roth IRA. Most people prefer to stick with one type of IRA though. Here is more information to get you started: <ul> <li><a href="http://cashmoneylife.com/2009/09/09/how-to-open-roth-ira-select-custodian/" rel="nofollow">How to Open a Roth IRA</a>.</li> <li><a href="http://cashmoneylife.com/2009/09/10/where-to-open-a-roth-ira-account/" rel="nofollow">Best Brokerages for a Roth IRA Account</a>.</li> </ul> Best of luck! That is correct, Luke. Also, Traditional and Roth IRAs have the same contribution limits and you can only contribute $5,000 to these accounts. So if you wanted you could contribute $2,500 to a Traditional IRA and $2,500 to a Roth IRA. Most people prefer to stick with one type of IRA though.

Here is more information to get you started:

Best of luck!

]]> By: Luke http://cashmoneylife.com/2008/07/16/how-many-retirement-accounts-can-you-have/comment-page-1/#comment-19752 Luke Mon, 21 Sep 2009 03:13:08 +0000 http://cashmoneylife.com/?p=757#comment-19752 Concerning IRA accounts, am I correct in that I cannot contribute more than $5000 total per taxation year, spread across all of my IRA accounts?(I am less than 50 years of age) So to clarify, I cannot open two accounts and contribute $5000 to each of them in the same year, correct? Thanks, Luke Concerning IRA accounts, am I correct in that I cannot contribute more than $5000 total per taxation year, spread across all of my IRA accounts?(I am less than 50 years of age) So to clarify, I cannot open two accounts and contribute $5000 to each of them in the same year, correct?

Thanks,
Luke

]]> By: Ryan http://cashmoneylife.com/2008/07/16/how-many-retirement-accounts-can-you-have/comment-page-1/#comment-19474 Ryan Fri, 28 Aug 2009 01:16:00 +0000 http://cashmoneylife.com/?p=757#comment-19474 You can deduct contributions to a Traditional IRA in addition to contributions to a 401k so long as you meet income requirements and don't exceed contribution limits. Source: <a href="http://www.irs.gov/publications/p590/ch01.html" rel="nofollow">http://www.irs.gov/publications/p590/ch01.html</a> <blockquote>Modified AGI limit for traditional IRA contributions increased. For 2008, if you were covered by a retirement plan at work, your deduction for contributions to a traditional IRA is reduced (phased out) if your modified AGI is: <ul> <li>More than $85,000 but less than $105,000 for a married couple filing a joint return or a qualifying widow(er),</li> <li>More than $53,000 but less than $63,000 for a single individual or head of household, or</li> <li>Less than $10,000 for a married individual filing a separate return.</li> </ul> For 2008, if you either lived with your spouse or file a joint return, and your spouse was covered by a retirement plan at work, but you were not, your deduction is phased out if your modified AGI is more than $159,000 but less than $169,000. If your modified AGI is $169,000 or more, you cannot take a deduction for contributions to a traditional IRA. See How Much Can You Deduct? in this chapter. </blockquote> You can deduct contributions to a Traditional IRA in addition to contributions to a 401k so long as you meet income requirements and don’t exceed contribution limits.

Source: http://www.irs.gov/publications/p590/ch01.html

Modified AGI limit for traditional IRA contributions increased. For 2008, if you were covered by a retirement plan at work, your deduction for contributions to a traditional IRA is reduced (phased out) if your modified AGI is:

  • More than $85,000 but less than $105,000 for a married couple filing a joint return or a qualifying widow(er),
  • More than $53,000 but less than $63,000 for a single individual or head of household, or
  • Less than $10,000 for a married individual filing a separate return.

For 2008, if you either lived with your spouse or file a joint return, and your spouse was covered by a retirement plan at work, but you were not, your deduction is phased out if your modified AGI is more than $159,000 but less than $169,000. If your modified AGI is $169,000 or more, you cannot take a deduction for contributions to a traditional IRA. See How Much Can You Deduct? in this chapter.

]]> By: Sandy http://cashmoneylife.com/2008/07/16/how-many-retirement-accounts-can-you-have/comment-page-1/#comment-19473 Sandy Fri, 28 Aug 2009 00:47:05 +0000 http://cashmoneylife.com/?p=757#comment-19473 Can i deduct my contribution to an ira account in ny tax return if i have a 401k plan at work? Can i deduct my contribution to an ira account in ny tax return if i have a 401k plan at work?

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