Comments on: IRA Contribution Limits And 401k Contribution Limits, 2009

By: Laura

Laura — Sat, 13 Mar 2010 03:56:35 +0000

So I can contribute to my employer’s 401k and contribute to a Roth IRA at the same time?

By: Barbara

Barbara — Fri, 12 Mar 2010 16:13:36 +0000

Thank you for the response… one more question. In regards to the amounts per year that we are allowed to contribute to a Roth IRA. If a person can contribute $6000 a year is that per Roth IRA or would a person continue adding the maxium amount to the same Roth IRA each year? I mean does a person have to open a new one each time? Also is the interest earned on a Roth IRA compound interest?

By: Pinyo

Pinyo — Tue, 09 Mar 2010 02:38:41 +0000

@Barbara — Yes, you’re correct about contributions with one exception — you can actually contribution an additional $5,500 into his 401k as catch-up contribution (the same applies to 2010).

Also, you can still contribute to your 2009 Roth IRA via spousal IRA contribution. Here’s more information about it: http://www.investopedia.com/ar.....021903.asp

As for 401k, your new job will have to sponsor a 401k plan. If it does, you can contribute $16,500, plus $5,500 catch-up, see: http://www.moolanomy.com/2267/.....-for-2010/

By: Barbara

Barbara — Fri, 05 Mar 2010 23:24:23 +0000

I am just getting started in saving for retirement. Although I have a very large amount of money in a regular savings account I am looking for retirement options also. Sadly I am 51 years old. I know I should have begun this sooner but instead we just saved in a plain ole savings account. Our employer sponsors a couple of 401k plans and then there is the Roth IRA’s available at the bank etc. We’d like to have a Roth IRA and contribute to the company sponsored 401k. My husband earns about $80,000 a year. I understand the maximun he can contribute is $16,500 a year. Am I correct in assuming he can also contribute an additional $6,000 a year into a Roth IRA? Are we smart at our age to do it this way or is there a better way. I am not currently employed. Lost my job of 18 years last year. When I find employment can I also pay the maximum amounts of $6000 a year to the Roth IRA and $16,500 to the 401K ? Sorry for all the questions.

By: simply me

simply me — Mon, 08 Feb 2010 16:40:51 +0000

I have a question. I have an IRA and for 2009 I did not pay anything in to or take anything out of. I did not receive a 1099 do I need to report anything on my taxes?

By: Spice

Spice — Sun, 10 Jan 2010 04:41:54 +0000

I am confused about MAGI calculations. So need help with the following:

SCENARIO 1: My total compensation in 2009 is 119K of which I have received 103K and 16K invested in 401K (this does not include the employer match). What is my MAGI? Am i still elligible to invest in IRA for 2009? how much?

SCENARIO 2: My total compensation in 2009 is 121K of which I have received 105K and 16K invested in 401K (this does not include the employer match). Am i still elligible to invest in IRA for 2009? how much?

By: Pinyo

Pinyo — Fri, 18 Dec 2009 13:23:15 +0000

@Kevin – I am not sure what the answer is so I posted your question here: http://answers.moolanomy.com/2.....-withdraw/

By: Kevin F.

Kevin F. — Fri, 18 Dec 2009 13:07:28 +0000

Thanks for this resource. Here’s an interesting question. I paid into the Roth IRA as usual. I got a substantial change in income unexpectedly that put me over the eligibility limit. Should I just pay the penalty, or can I somehow withdraw those funds, pay tax on gains, and then put it somewhere else?

By: Pinyo

Pinyo — Tue, 08 Sep 2009 19:52:16 +0000

@Britt – Thank you for the clarification. I appreciate it!

By: Britt (Your Roth IRA)

Britt (Your Roth IRA) — Tue, 08 Sep 2009 19:46:58 +0000

@Pinyo – Jean can only withdraw tax-free and penalty-free from her Roth IRA if she’s also met the 5 year holding period, meaning her account must be open and funded for at least five years first.

That said, original principal contributions to a Roth IRA can always be withdrawn tax-free and penalty-free, and since the IRS requires original contributions be totally withdrawn before you even begin to withdraw investment gains, it might be a moot point…