Retirement vehicles other than IRA, 401(k)

Because I'm not eligible for a 401(k) at my employer, my wife wanted me to look into getting an IRA. I don't qualify, however, because our AGI is too high. (It's not _that_ high, however; the reason I don't qualify for the

401(k) is that due to the distribution of wages at the employer, the 401(k) isn't even available if you hit the income ceiling. (As opposed to restrictions on how much you can put in.)) Are there any straightforward retirement vehicles (i.e., tax deferral/sheltering/etc) out there aside from the well-known ones like IRAs, Roth IRAs, and 401(k)s?
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Reply to
noone
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Everyone with earned income can contribute to an IRA, there's no income limit. It's the Roth IRA that has an income ceiling.

If you're not eligible for the 401(k) then you should be able to deduct your IRA contributions.

Annuities.

-- Barry Margolin, snipped-for-privacy@alum.mit.edu Arlington, MA

Reply to
Barry Margolin

This is a little confusing. There are no income limitations for contributing to a traditional IRA. There are only limits for being able to deduct it. However, if you are not covered by a retirement plan at work, then there is no income limit for deducting your IRA contributions, either. If you're talking about a Roth IRA, that's another story. If you want to shelter income, I would suggest buying growth stocks that aren't paying dividends. You pay no tax until you sell them, and when you do sell, the gains are taxed at more favorable rates than withdrawals from an IRA would be (unless Congress changes the current law.)

Reply to
bono9763

Long term capital gains are still taxed 15%, not your ordinary income rate. By using low cost mutual funds or ETFs, keeping expenses below

0.50% (under 0.20% even better), you will still enjoy tax deferral. Or you can pay 1.5% or more in an annuity and find you've paid 20% over the next 20 years to turn all those gains to ordinary income upon withdrawal. JOE
Reply to
joetaxpayer

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