Author Topic: Tradtional & Roth IRA limits..  (Read 1380 times)

MoonShadow

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Tradtional & Roth IRA limits..
« on: August 17, 2015, 03:39:52 PM »
I have a quick question that I keep getting conflicting information about, even from 'professionals'.

Assuming that I am fully able to contribute to either a traditional or Roth IRA, does contributing to one reduce my limit for contributing to the other?  Or are the two annual limits completely independent of one another?

MDM

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Re: Tradtional & Roth IRA limits..
« Reply #1 on: August 17, 2015, 04:13:58 PM »
The limit applies to the total for both.  You cannot contribute $4K to traditional and another $4K to Roth.

See http://www.irs.gov/Retirement-Plans/Plan-Participant,-Employee/Retirement-Topics-IRA-Contribution-Limits.

BarkyardBQ

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Re: Tradtional & Roth IRA limits..
« Reply #2 on: August 17, 2015, 04:18:49 PM »
The limit applies to the total for both.  You cannot contribute $4K to traditional and another $4K to Roth.

See http://www.irs.gov/Retirement-Plans/Plan-Participant,-Employee/Retirement-Topics-IRA-Contribution-Limits.

+1

Put simply, you have a $5500 bucket called IRA, whether it's Roth or Traditional.

Traditional has a phase out for the tax deduction depending on your income.

MoonShadow

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Re: Tradtional & Roth IRA limits..
« Reply #3 on: August 17, 2015, 04:34:15 PM »
Thanks for the quick answer, MDM!  Now the next question is, what is a "qualified reservist repayment"?