Through my employer I have a Simple IRA plan, and I understand I can contribute up to $10.5K of salary into that for 2008.
Some related issues I don't understand:
1) Is there some Income / AGI for the Simple IRA above which you cannot deduct the contribution?2) Can I separately set up and fund both a Roth IRA and Traditional IRA and contribute to those, in addition to the $10.5K contributed to Simple IRA? Apparently Roth IRAs are limited to people who make under $100K AGI if you file single? If you make more than the limit for Roth IRA, can you still contribute $5K to the Traditional IRA? If not, what are limitations for additional contributions to Traditional IRA?
3) Assuming you have a sole proprietorship that is independent of your day job and have a SEP IRA connected with that sole proprietorship, are you allowed to contribute anything to that SEP IRA in addition to the Simple IRA you contribute to through work? I see that the contribution limit on a SEP IRA is at $46K, which is obviously very attractive by comparison to the $10.5K limit for the Simple IRA. Assuming you cannot take both contributions, would you have the ability to choose the better of the two, or would the mere availability of the Simple IRA in one job preclude participation in a SEP IRA in the sole proprietorship?nish