IRA Notes

I just spent a bit of time reading about IRAs. The hardest question to answer is whether or not your tax liability will be higher now or at retirement.

Single or Head of Household Individual             is not active No limit Full deduction
Individual is active $53,000 or less Full deduction
More than $53,000 but less than $63,000 Partial deduction
$63,000 or more No deduction
Tax Year Regular Contribution Limit Tax Year Additional Catch-Up Contribution Limit
2007 $4,000 2007 $1,000
2008 $5,000 2008 $1,000
2009 and beyond $5,000 2009 and beyond $1,000

The 2009 contribution limit is $5,000. It appears you also have to have AGI of less than 53,000 (if an active participant) to be eligible for the full tax deduction. I need to look into what kind of fees I’m paying on my old 401k and whether or not I should investigate rolling over into a new plan.

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