IRA contribution in simple terms? - The Finance Forums: Financial planning, debt help, loans, mortgages, retirement and 401k, investment, and general finance discussion forums

jennem · #1 (**permalink**) 05-08-2008, 03:00 PM

I posted about this about 6 weeks ago, but the time has come (apartment sale closed), and I'm adding more details. I appreciated the past advice and am looking for more. Would LOVE to get an actual advisor but can't afford it!

I want to make the maximum contribution to my traditional IRA this year, in order to reduce my tax liability a bit. (Going to have more bank interest than usual.)

I work but am not covered by a company plan. (Well, I have a company plan but there were no contributions last year and won't be any this year as the company is in financial trouble, so the company accountant said to un-check that box on my W2). My husband works and is covered by a company plan, but his contributions to that plan are taxable (City of New York employee plan).

We make a combined income of under $100,000.

How much can I contribute, and how much can he contribute, and have the amount be tax deductible?

Also, we are in our late 30s. Most of our retirement savings is in our respective company plans. In our private IRAs, we have about $8K in a Pax World Growth Fund, and about $6K in CDs. Any suggestions for this year's contribution, whatever allowable amount that might be? I am clueless about balancing portfolios, especially in view of the economy's major issues and the likelihood of significant changes to the American way of life in the future.

Thanks.

Jennifer

GarySpicuzza · #2 (**permalink**) 05-09-2008, 11:02 AM

AllThingsPersonalFinance · #3 (**permalink**) 05-18-2008, 07:47 AM

Quote:

Originally Posted by jennem

I posted about this about 6 weeks ago, but the time has come (apartment sale closed), and I'm adding more details. I appreciated the past advice and am looking for more. Would LOVE to get an actual advisor but can't afford it!

I want to make the maximum contribution to my traditional IRA this year, in order to reduce my tax liability a bit. (Going to have more bank interest than usual.)

I work but am not covered by a company plan. (Well, I have a company plan but there were no contributions last year and won't be any this year as the company is in financial trouble, so the company accountant said to un-check that box on my W2). My husband works and is covered by a company plan, but his contributions to that plan are taxable (City of New York employee plan).

We make a combined income of under $100,000.

How much can I contribute, and how much can he contribute, and have the amount be tax deductible?

Also, we are in our late 30s. Most of our retirement savings is in our respective company plans. In our private IRAs, we have about $8K in a Pax World Growth Fund, and about $6K in CDs. Any suggestions for this year's contribution, whatever allowable amount that might be? I am clueless about balancing portfolios, especially in view of the economy's major issues and the likelihood of significant changes to the American way of life in the future.

Thanks.

Jennifer

You are in your late thirties with $14k saved. Get your discretionary spending under control. Make a budget first and stick to it.

jennem · #4 (**permalink**) 05-20-2008, 03:09 PM

Quote:

Originally Posted by AllThingsPersonalFinance

You are in your late thirties with $14k saved. Get your discretionary spending under control. Make a budget first and stick to it.

Wow, judgmental, are we? What do you know about my income, budget, or other assets?

$14K in my IRA, true. Own my $325,000K home outright with no mortgage to speak of. Same for my car--nary a payment to make. No credit card debt. No debt of ANY kind at all--totally in the black, every day of my life. $10K in daughter's college fund. $40K in liquid assets like cash, gold, and CDs.

Very little in the IRA because my husband has, and I had, work accounts that covered us.

I don't know many people in their late 30s, with kids, on lower-middle-class incomes like ours, who have done as well.

Geesh, came for good advice, got this? Thanks to the previous poster, though!

GarySpicuzza · #5 (**permalink**) 05-20-2008, 04:36 PM

You're welcome, Jennifer.

Way to give it to him/her...

There's nothing quite like a good ole Internet RANT!!!

I do it all the time.

Pic of Jennifer below:

jennem · #6 (**permalink**) 05-20-2008, 11:22 PM

Oh for God's sake grow up. The only little boys who need to post pictures like that, are the ones who've never seen it in real life.

Thanks for the reminder to go elsewhere for financial discussions. Good luck on getting through puberty.

GarySpicuzza · #7 (**permalink**) 05-21-2008, 12:15 AM

Actually this is one of the best sites for financial advice.

The people who own this site and the moderators are actual financial professionals.
This site is just slow but most all financial discussion sites are.

If it's not about sex, religion, politics or some celebrity scandal most people just can't be bothered with exactly correct financial information.

You won't find asinine posts or financial services "cult" bllsht here that won't be challenged with the exactly correct information.

So don't give up just yet!

jennem wrote:

Quote:

Good luck on getting through puberty.

Ya know, come to tinkaboutit, the next time I see my doctor I'm going to ask him if I'm healthy enough for sexual activity and see if a free sample of testosterone is right for me.