IRA contribution maximums?????????????

[redgtxdi]

So a few years ago my company went to our first retirement plan........(before that I just did my own w/Vanguard).

We started a SIMPLE ira that's worked well for me. My company matches so I took more advantage of that one & pretty much neglected my old one.

I think my SIMPLE has a $6K / yr. max. Traditional IRA like $2,200 or something.

Does that theoretically make my max allowed contrib circa $8K??? Or no more than $6K in the SIMPLE or $6K in SIMPLE + Traditional???

Ya, I could ask in the morning, but midnight on a Tuesday is what ATOT's for.

 

[Shadowknight]

While I'm an accounting major, it's been awhile since I've messed with pension funds. I'm pretty sure you're limited to a maximum deduction of $3,000 for Roth and normal IRA. (i.e., if you have both, you only get ONE $3,000 deduction no matter how you split it, not $3,000 apiece). I don't know about SIMPLE, but I presume it would be similar. You can self-contribute as much as you want, but only get $3,000 deduction each yea.

 

[EagleKeeper]

Combined total by SS#

 

[EvilPaper]

Simple IRA Deferral limit for 2005 is $10,000.

Traditional and Roth IRA Contribution limit for 2005 is $4,000.00

 

[redgtxdi]

Originally posted by: EvilPaper
Simple IRA Deferral limit for 2005 is $10,000.

Traditional and Roth IRA Contribution limit for 2005 is $4,000.00

Geeeeemineeeeee Chrissssssssmussss!!!


I hadn't realized the limits went up so much!!!


Now.................does the $3K deductible limit still stand for tax purposes???

(IIRC, the SIMPLE is taxed differently than traditional so I dunno if combining contributions to equal a set amount has tax consequences because of that)

P.S. Thanks for the info guys. You respond much faster than my Morgan STanley guy........(big surprise, eh?)........LOL!!!!

 

[EvilPaper]

Originally posted by: redgtxdi

Originally posted by: EvilPaper
Simple IRA Deferral limit for 2005 is $10,000.

Traditional and Roth IRA Contribution limit for 2005 is $4,000.00

Geeeeemineeeeee Chrissssssssmussss!!!


I hadn't realized the limits went up so much!!!


Now.................does the $3K deductible limit still stand for tax purposes???

(IIRC, the SIMPLE is taxed differently than traditional so I dunno if combining contributions to equal a set amount has tax consequences because of that)

P.S. Thanks for the info guys. You respond much faster than my Morgan STanley guy........(big surprise, eh?)........LOL!!!!

I'm pretty sure the deduction is $4000 for 2005, for the traditional/roth. I believe, however, that because the SIMPLE IRA is an employer retirement plan, your deduction may phase out, depending on your income and your filing status. Honestly though, I am not really sure. Its never to early to call your tax person.

 

[redgtxdi]

Tax guy = "me"!!! LOL!! (Long live Turbo Tax)


I'll definitely get a hold of my MSDW guy = "whipping boy" and see if he can entertain me w/ info about deductions & contrib maxes!!!

Thx!!