I started a job in December which won't allow me to use the 401k plan for the next few months. What am i allowed to contribute to? Can i contribute to a roth and an IRA for 2008 and then when allowed, contribute to the 401k plan?
Thanks
Dave
If it's just a few months until you're eligible for the 401(k) plan, you can probably make up the your full contribution for the year after that. You'll have to read your plan documents about any maximums on contributions or employer matching.
In the meantime, if you haven't made a 2007 IRA contribution yet, you have until April 15 to do so, as well as making your 2008 contribution now.
Here's an article about Roth IRA eligibility:
-Sandra
In 2008, an IRA would be deductible if your income is $53,000 or less, or pro-rated (scaled) up to an income of $63,000. If Married filing joint the number go from $83K-$103K. Sandra gave a link regarding Roth eligibility. JOE
Are you allowed to start the 401K sometimes this year? Will there be a contribution limit at that time? Can you make a full year's worth of contribution the remainder of this year?
Yes, I should be able to contribute to a 401k plan later this year. I will attempt to contribute the maximum amount I can.
Am I allowed to contribute to both the Roth and traditional IRA this year? I'm 53 years old.
Also, since I'm working away from my home I'm on a per diem taxing situation. They are only taxing me on about 40% of my income and the rest is to take care of my living arrangements. Is there a tax implication to this? Are my 401k contributions based on taxable income or gross?
Thanks
Dave
Is that true even with the existence of his company's 401(k)?
-Will
william dot trice at ngc dot com
Well, it's WHY there's those limits. If no 401(k) (or other acct. such as 403(b) there is no limit on income for deductibility. JOE
Ah, I think I'm getting confused with the Roth limits. Thanks.
-Will
william dot trice at ngc dot com
This only goes to the point that there are "too many rules","too many different choices". I'd like to see a fixed number, say $20,000, that one can save pre-tax or Roth, your choice, regardless of anything else. You want an extra amount for 50+? Ok, but that's the only 'other' rule to remember. I know, wishful thinking. JOE
BeanSmart website is not affiliated with any of the manufacturers or service providers discussed here. All logos and trade names are the property of their respective owners.