I am 64 years old. I work part time and earn about $25k. I have already contributed $6000 to a ROTH IRA for 2009. Can I also put money into a non-deductible IRA for this year? If so, what would be the maximum I could contribute?
thank you.
I am 64 years old. I work part time and earn about $25k. I have already contributed $6000 to a ROTH IRA for 2009. Can I also put money into a non-deductible IRA for this year? If so, what would be the maximum I could contribute?
thank you.
The total of your Roth and traditional IRA contributions is 6000,
So you have met that total and cannot contribute to the traditional IRA (unles for some unexplained reason want to recharacterize some or all of your Roth contributions as Traditioinal contributions and file a form 8606. Offhand I don't know why you would do that unless you were not eligible to make a 2009 Roth contribution due to AGI limits or filing status.
What about a "catch-up" contribution to my 401k? I've never looked into this so I don't know anything about it.
Whatever your employer allows, up to the catch-up amount (which does apply to you, based on your age).
The real question is: earning $25K, will your employer allow you make a contribution of even $16.5K, let alone $22K (the 401k annual elective deferral limits for 2009)? That would be an extraordinarily high percent of your salary or wages, given that the employer has to provide some balance of the tax deferral benefit across most employees, not just a few.
-Mark Bole
Actually, at $25K of wages, this is likely not one of the highly compensated people in the company. Therefore, assuming it's a relatively small company, the employee could actaully be helping the employer because of the 401(k) testing limits that you're referring to. The law allows up to 100% of compensation to be put into the 401(k) plan, the question is does their plan allow it?
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