IRA and Roth IRA question

**jIM_Ohio** · 02-14-2008, 07:32 AM

NO. 5k max in 2008 to all IRAs.

A person has only one IRA. The Roth, traditional and deductable words are just labels on the taxes paid for that one IRA. That one IRA has a yearly limit. 4k 2007, 5k 2008, 1k catch up if over 50.

The IRA is held by one or more custodians. Depending on the custodian, that one custodian might open multiple accounts (I have my one IRA with T Rowe- some rollover, some roth). Each mutual fund I own with a given wrapper is one account. PRFDX held in rollover is one account. PRFDX held in roth is a second account. TRIGX is in both, and is 2 seperate accounts as well.

FYI- there is no "standard IRA". I understand the IRA types to be:

Roth IRA
Traditional IRA (traditional IRA might or might not be deductable)
Self employed IRA (I think this is different because of contribution limits).

**jeffmem** · 02-14-2008, 07:35 AM

As far as I know, yes they can, but you cannot put your full yearly amount in both accounts, you can put money in both accounts, but only up to your max per year. Meaning if you put 2000 in one and 2000 in the other then that is ok, but you cannot put 4000 in each. Or is 5000 total now... Anyway...

**rizzmo** · 02-14-2008, 09:16 AM

Thanks

**Snave** · 02-14-2008, 10:22 AM

$5000 in 2008 that can be dispersed over both, but not above the $5000 max total. I do believe that you have to have taxable income if you have a spouse that doesn't work to actually take advantage of a traditional. But, I know that your spouse doesn't have to have an income to contribute her $5000 in a roth.

**gekkoplus** · 02-14-2008, 01:31 PM

So if I am filing my taxes jointly, is $4000 limit in 2007 (or $5000 in 2008) for both me and my spouse combined or we can contribute $4000 individually ($8000 combined)? Also does this limit include contributions towards 401K?

**texastek76** · 02-15-2008, 04:30 AM

Originally posted by gekkoplus View Post

So if I am filing my taxes jointly, is $4000 limit in 2007 (or $5000 in 2008) for both me and my spouse combined or we can contribute $4000 individually ($8000 combined)? Also does this limit include contributions towards 401K?

Your 401(k) limits are indepedant of your IRA limits. I think the number is $15,500 yearly for thr 401(k) and as stated above $4000k this year for the IRAs.

**jIM_Ohio** · 02-15-2008, 05:26 AM

Originally posted by texastek76 View Post

Your 401(k) limits are indepedant of your IRA limits. I think the number is $15,500 yearly for thr 401(k) and as stated above $4000k this year for the IRAs.

5k is the 2008 IRA limit for traditional and Roth
4k is the limit in 2007 for the traditional and Roth

**gekkoplus** · 02-15-2008, 06:30 PM

Sorry for asking an explicit answer again - Does this mean that I can have $15,500 + $4000 + $4000 = $23,500 as deductible income in 2007 if filing jointly? (my 401k + my IRA + non-working spouse's IRA)

I apologize for hacking op's thread, I just thought I could get a related query answered instead of starting a completely new thread..

**jIM_Ohio** · 02-15-2008, 09:31 PM

Originally posted by gekkoplus View Post

Sorry for asking an explicit answer again - Does this mean that I can have $15,500 + $4000 + $4000 = $23,500 as deductible income in 2007 if filing jointly? (my 401k + my IRA + non-working spouse's IRA)

I apologize for hacking op's thread, I just thought I could get a related query answered instead of starting a completely new thread..

read pub 590 from the IRS. The short answer is maybe.

Yes to the 401k
maybe to 4k IRA for you
maybe to 4k IRA for spouse

pub 590 lists the rules to qualify for deductable IRA. Married filing jointly, income limits (less than 83k AGI) and maybe a few other qualifications.

IRA and Roth IRA question