Max ROTH IRA Contribution This Year?

[GTaudiophile]

Which is it?

 

[imported_LoKe]

3k regular, 3.5 if you're over 50?

 

[dartworth]

Contribution limits for tax years 2005?2007 are $4,000; if you're age 50 or over, you're allowed to contribute even more.

 

[GTaudiophile]

Somewhere I thought I heard $3500, but had not heard the > 50 caviat.

 

[Engineer]

It has increased to 4k for this year. It was 3k last year!

 

[Descartes]

It's 4k for single and 5k for married.

[edit]Oops, not 5k if you're married.[/edit]

 

[Engineer]

Originally posted by: Descartes
It's 4k for single and 5k for married.

Marriage has nothing to do with the limit. Over age 50 does.

It's 4k unless over 50.

Click me.

Goes to $5,000 in 2008. Also, IIRC, 401k and IRA limits will be adjusted for inflation anually after 2008.

 

[GTaudiophile]

Yeah, I just saw $4K listed elsewhere.

/Thread

 

[dartworth]

Text

 

[imported_LoKe]

Guess I was thinking 2004. Sorry.

 

[Descartes]

I really wish you could contribute more to a Roth. $4k is such a little amount that tax-deffered growth is almost ineffectual; almost better to take a tax deduction from a traditional if you make enough money to where that makes sense.

 

[Engineer]

Originally posted by: dartworth
Text

Contribution limits
While there is no limit on how much you can save in your account, there are limits on how much you can contribute each year. And if you're age 50 and older, you can make extra "catch-up" contributions. The chart below shows the maximum annual contribution limits by tax year. Note that after 2008, the annual IRA contribution limit will be indexed for inflation in $500 increments.

Thanks for the link. Confirmed what I thought that I had read/heard.

 

[Engineer]

Originally posted by: Descartes
I really wish you could contribute more to a Roth. $4k is such a little amount that tax-deffered growth is almost ineffectual; almost better to take a tax deduction from a traditional if you make enough money to where that makes sense.

That's what a good ole 401k plan is for! 😉

I would like to also give more to the Roth, but I'm currently in mortgage payoff mode. Besides, I max out the 401k now, so I don't feel so bad.

 

[Descartes]

Originally posted by: Engineer

Originally posted by: Descartes
I really wish you could contribute more to a Roth. $4k is such a little amount that tax-deffered growth is almost ineffectual; almost better to take a tax deduction from a traditional if you make enough money to where that makes sense.

That's what a good ole 401k plan is for! 😉

I would like to also give more to the Roth, but I'm currently in mortgage payoff mode. Besides, I max out the 401k now, so I don't feel so bad.

I'm self-employed, so no 401k for me; however, I do have a Simple IRA setup. It helps, but still the limits are rather low.

I personally prefer tax-deductible contributions over tax-deferred growth. Paying income tax on larger amounts of money, investing in a fund and then taking the capital gains hit after is depressing.

 

[aiex]

Originally posted by: GTaudiophile
Max IRA Contribution This Year?

Your thinking of giving money to the IRA? Scum... 😉

Ai3x 😉

 

[GTaudiophile]

Oh, I just love those blokes up in Northern Ireland! 😛

 

[dirtboy]

Originally posted by: Descartes

Originally posted by: Engineer

Originally posted by: Descartes
I really wish you could contribute more to a Roth. $4k is such a little amount that tax-deffered growth is almost ineffectual; almost better to take a tax deduction from a traditional if you make enough money to where that makes sense.

That's what a good ole 401k plan is for! 😉

I would like to also give more to the Roth, but I'm currently in mortgage payoff mode. Besides, I max out the 401k now, so I don't feel so bad.

I'm self-employed, so no 401k for me; however, I do have a Simple IRA setup. It helps, but still the limits are rather low.

Not true. Ask your financial planner/advisor about Indi401k's. They are specifically for self employed people.

 

[Descartes]

Originally posted by: dirtboy

Originally posted by: Descartes

Originally posted by: Engineer

Originally posted by: Descartes
I really wish you could contribute more to a Roth. $4k is such a little amount that tax-deffered growth is almost ineffectual; almost better to take a tax deduction from a traditional if you make enough money to where that makes sense.

That's what a good ole 401k plan is for! 😉

I would like to also give more to the Roth, but I'm currently in mortgage payoff mode. Besides, I max out the 401k now, so I don't feel so bad.

I'm self-employed, so no 401k for me; however, I do have a Simple IRA setup. It helps, but still the limits are rather low.

Not true. Ask your financial planner/advisor about Indi401k's. They are specifically for self employed people.

I didn't mean that I couldn't get a 401k; rather, just that I don't.

 

[gopunk]

Originally posted by: Descartes

Originally posted by: Engineer

Originally posted by: Descartes
I really wish you could contribute more to a Roth. $4k is such a little amount that tax-deffered growth is almost ineffectual; almost better to take a tax deduction from a traditional if you make enough money to where that makes sense.

That's what a good ole 401k plan is for! 😉

I would like to also give more to the Roth, but I'm currently in mortgage payoff mode. Besides, I max out the 401k now, so I don't feel so bad.

I'm self-employed, so no 401k for me; however, I do have a Simple IRA setup. It helps, but still the limits are rather low.

I personally prefer tax-deductible contributions over tax-deferred growth. Paying income tax on larger amounts of money, investing in a fund and then taking the capital gains hit after is depressing.

aren't the limits the same for roth and simple?

also another thing that sucks about them is that you can only contribute if you make less than a certain amount.

 

[dirtboy]

Originally posted by: Descartes

Originally posted by: dirtboy

Originally posted by: Descartes

Originally posted by: Engineer

Originally posted by: Descartes
I really wish you could contribute more to a Roth. $4k is such a little amount that tax-deffered growth is almost ineffectual; almost better to take a tax deduction from a traditional if you make enough money to where that makes sense.

That's what a good ole 401k plan is for! 😉

I would like to also give more to the Roth, but I'm currently in mortgage payoff mode. Besides, I max out the 401k now, so I don't feel so bad.

I'm self-employed, so no 401k for me; however, I do have a Simple IRA setup. It helps, but still the limits are rather low.

Not true. Ask your financial planner/advisor about Indi401k's. They are specifically for self employed people.

I didn't mean that I couldn't get a 401k; rather, just that I don't.

That's not what you said, "so no 401k for me." Then you said, "it helps, but still the limits are rather low," as if you were complaining that your choices are limited. There are independent 401k's without all the setup & annual fees of a traditional 401k and much higher limits than your SIMPLE.

 

[austin316]

I thought self-employed people use 403(b)?

 

[dirtboy]

Originally posted by: austin316
I thought self-employed people use 403(b)?

No.

The 403(b) is for teachers, preachers & non-profits.

 

[Descartes]

Originally posted by: dirtboy

Originally posted by: Descartes

Originally posted by: dirtboy

Originally posted by: Descartes

Originally posted by: Engineer

Originally posted by: Descartes
I really wish you could contribute more to a Roth. $4k is such a little amount that tax-deffered growth is almost ineffectual; almost better to take a tax deduction from a traditional if you make enough money to where that makes sense.

That's what a good ole 401k plan is for! 😉

I would like to also give more to the Roth, but I'm currently in mortgage payoff mode. Besides, I max out the 401k now, so I don't feel so bad.

I'm self-employed, so no 401k for me; however, I do have a Simple IRA setup. It helps, but still the limits are rather low.

Not true. Ask your financial planner/advisor about Indi401k's. They are specifically for self employed people.

I didn't mean that I couldn't get a 401k; rather, just that I don't.

That's not what you said, "so no 401k for me." Then you said, "it helps, but still the limits are rather low," as if you were complaining that your choices are limited. There are independent 401k's without all the setup & annual fees of a traditional 401k and much higher limits than your SIMPLE.

I guess I misunderstood the 401k in the context of a small business. I said I could simply because I knew it was possible, but I didn't know it was as easy at it appears to be.

A little further research suggests that I might be able to contribute well over double what I contribute to my IRA. I'll have to talk to my people about that. Thanks!