| Author |
Message |
joetaxpayer
Guest
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 Posted:
Thu Nov 10, 2005 9:00 am Post subject:
Re: Can I have more than one IRA? |
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rick++ wrote:
| Quote: | 1) The contribution is $4000 per year. It jumps $500 every
every COLA acumulates an equivalent percentage.
|
Rick, the 2005-2007 limit is $4000
2008-2010 it's $5,000.
On 12/31/2010, the limits expire along with much of the
other provision of the new tax code I've been trying to
memorize.
You may be thinking of 401(k) limits which now are 2005 =
$14,000, 2006 = $15,000, and 2007 on are set to increase in
the 500 increments indexed for inflation. (So if I read
correctly, if 2006 inflation is under 3-1/3%, there would be
no icrease till '07.)
JOE
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Anne Watson
Guest
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| Posted:
Thu Nov 10, 2005 9:00 am Post subject:
Re: Can I have more than one IRA? |
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| Quote: | From what I have read an IRA can only have up to $3000 a
year put in it. I am 35 so that doesn't give me a ton of
|
Just to add a few more dollars-isn't the money you put in
each years IRA contribution tax free?
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**THE-RFI-EMI-GUY**
Guest
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| Posted:
Fri Nov 11, 2005 9:00 am Post subject:
Re: Can I have more than one IRA? |
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What if I have various IRA's and SEP accounts and wish to
withdraw early from one account taking substantially equal
deductions as permitted (72T??) Can I do this from only
one account or does the law require me to consider the sum
total of all the accounts when calculating?
--
Joe Leikhim K4SAT
"The RFI-EMI-GUY"
"Follow The Money"
<< ======================================================= >>
<< The foregoing is intended for educational purposes only >>
<< and does NOT constitute legal OR professional advice. >>
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<< Copyright (2005) - All rights reserved. >>
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Barry Margolin
Guest
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| Posted:
Fri Nov 11, 2005 9:00 am Post subject:
Re: Can I have more than one IRA? |
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Vic Dura <vpdura@CLUTTERhiwaay.net> wrote:
| Quote: | Barry Margolin <barmar@alum.mit.edu> wrote:
You can have as many IRA accounts as you want, but the
combined contributions to all of them is limited to $3,000
per year.
If your employer has a 401K, you can invest in that, and the
current limit is $13K/year, plus your employer may provide
some matching contributions on top of that.
Is the $13k allowed in the 401K in addition to the $3k ($4k
in 2005) allowed in the IRA?
|
Yes. And the 401K limit is indexed, I think, so it should
increase in the future.
--
Barry Margolin, barmar@alum.mit.edu
Arlington, MA
<< ======================================================= >>
<< The foregoing is intended for educational purposes only >>
<< and does NOT constitute legal OR professional advice. >>
<< >>
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<< Copyright (2005) - All rights reserved. >>
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Victor Roberts
Guest
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| Posted:
Fri Nov 11, 2005 9:00 am Post subject:
Re: Can I have more than one IRA? |
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"Anne Watson" <anneb3@mindspring.com> wrote:
| Quote: | From what I have read an IRA can only have up to $3000 a
year put in it. I am 35 so that doesn't give me a ton of
Just to add a few more dollars-isn't the money you put in
each years IRA contribution tax free?
|
The only problem is that I am well past 35 :-) I assume
you were responding to another person.
--
Vic Roberts
Replace xxx with vdr in e-mail address.
<< ======================================================= >>
<< The foregoing is intended for educational purposes only >>
<< and does NOT constitute legal OR professional advice. >>
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Barry Margolin
Guest
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| Posted:
Mon Nov 14, 2005 9:00 am Post subject:
Re: Can I have more than one IRA? |
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**THE-RFI-EMI-GUY** <rhyolite@nettally.com> wrote:
| Quote: | What if I have various IRA's and SEP accounts and wish to
withdraw early from one account taking substantially equal
deductions as permitted (72T??) Can I do this from only
one account or does the law require me to consider the sum
total of all the accounts when calculating?
|
As far as taxes are concerned, all your IRAs are treated as
a combined entity.
--
Barry Margolin, barmar@alum.mit.edu
Arlington, MA
<< ======================================================= >>
<< The foregoing is intended for educational purposes only >>
<< and does NOT constitute legal OR professional advice. >>
<< >>
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Harlan Lunsford
Guest
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| Posted:
Mon Nov 14, 2005 9:00 am Post subject:
Re: Can I have more than one IRA? |
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**THE-RFI-EMI-GUY** wrote:
| Quote: | What if I have various IRA's and SEP accounts and wish to
withdraw early from one account taking substantially equal
deductions as permitted (72T??) Can I do this from only
one account or does the law require me to consider the sum
total of all the accounts when calculating?
|
First remember that there's no difference between a SEP and
an IRA, since SEP contributions are funded into and with an
IRA account.
You can take withdrawal from only one account, but all must
be aggregated to do the calculation.
ChEAr$,
Harlan Lunsford, EA n LA
<< ======================================================= >>
<< The foregoing is intended for educational purposes only >>
<< and does NOT constitute legal OR professional advice. >>
<< >>
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<< Copyright (2005) - All rights reserved. >>
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Andrew
Guest
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| Posted:
Mon Nov 14, 2005 9:00 am Post subject:
Re: Can I have more than one IRA? |
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|
Victor Roberts wrote:
| Quote: | "Andrew" <andrew@jkl.com> wrote:
needin4mation@gmail.com wrote:
From what I have read an IRA can only have up to $3000 a
year put in it. I am 35 so that doesn't give me a ton of
money by 65, only 400k - 500k. Can I have more than one IRA
to make more money or am I "supposed" to do something else
to invest my money? Thank you.
There's no limit to the NUMBER of IRAs you have, but there
*are* limits to the TOTAL amount of money you can place in
ALL of them combined in any particular year. A number of
web sites will give you the basics - here's one:
www.turbotax.com/articles/FAQontheTraditionalIRA.html .
But I wonder where you got your figures about how much money
you'll end up with in 30 years. A quick calculation to end
up with $400,000 with a yearly contribution of $3,000 (at
10% annual compounding which is a pretty decent rate of
return, one might suggest) yields the fact you'd need to
ALREADY have over $46,000 in your account to start with!
Take it another way, same 10% yield, no starting balance.
You'd need to contribute almost $8,000/year to end up with
$400,000 at the end of 30 years starting from $0. (I do
hope my calculator is working okay here....)
Well, your calculator may need new batteries. I'm using an
HP financial calculator (the one built into the HP 200LX)
with the following assumptions:
Number of periods = 30
Annual Interest = 10%
Present Value = $0
Payment = $3000
Payments per Year = 1
Begin/End Mode = End
This gives a Future Value of $493,482.07
|
Vic - you're right without (as mine was doing by default)
taking into account inflation. I had an inflation factor
thrown in there as part of the retirement calculation. My
figures were in today's dollars adjusted for inflation,
yours were without inflation.
--
-------------------------------------------------------------
Regards -
- Andrew
<< ======================================================= >>
<< The foregoing is intended for educational purposes only >>
<< and does NOT constitute legal OR professional advice. >>
<< >>
<< The Charter and the Guidelines for submitting >>
<< messages to this newsgroup are at www.asktax.org. >>
<< Copyright (2005) - All rights reserved. >>
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joetaxpayer
Guest
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| Posted:
Mon Nov 14, 2005 9:00 am Post subject:
Re: Can I have more than one IRA? |
|
|
**THE-RFI-EMI-GUY** wrote:
| Quote: | What if I have various IRA's and SEP accounts and wish to
withdraw early from one account taking substantially equal
deductions as permitted (72T??) Can I do this from only
one account or does the law require me to consider the sum
total of all the accounts when calculating?
|
Ed Slott addresses this in his recent book on IRAs.
You may choose the one account to calculate the withdrawals.
Say you have a $1M IRA. You want to take an annual
withdrawal (need to be for 5 years, I believe or till after
59-1/2 whichever comes second). You decide to take an
ammount that a $200K account would cover, so you ask your
broker to open another account, direct him to transfer the
$200K and you may now take the withdrawals based on the
$200K balance.
Two years later you decide you need more money. You can
split the $1M (the original account left with $800K surely
grew to $1M after 2 years, right?) again into whatever two
balances you need to start this again. A bit of tracking is
all that's needed.
Short answer - Yes, one account.
JOE
<< ======================================================= >>
<< The foregoing is intended for educational purposes only >>
<< and does NOT constitute legal OR professional advice. >>
<< >>
<< The Charter and the Guidelines for submitting >>
<< messages to this newsgroup are at www.asktax.org. >>
<< Copyright (2005) - All rights reserved. >>
<< ======================================================= >> |
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