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Posted by noone on June 5, 2007, 3:20 pm
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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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Posted by Barry Margolin on June 6, 2007, 4:39 pm
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> 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
Everyone with earned income can contribute to an IRA,
there's no income limit. It's the Roth IRA that has an
income ceiling.
> _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.))
If you're not eligible for the 401(k) then you should be
able to deduct your IRA contributions.
> 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?
Annuities.
--
Barry Margolin, barmar@alum.mit.edu
Arlington, MA
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ------------------------------------------------------- >>
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Posted by bono9763@yahoo.com on June 6, 2007, 4:39 pm
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> 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?
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.)
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ------------------------------------------------------- >>
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Posted by joetaxpayer on June 8, 2007, 1:22 pm
Please log in for more thread options noone wrote:
> 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?
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
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ------------------------------------------------------- >>
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