Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 01-21-2009, 12:01 PM
Junior Member
 
Join Date: Jan 2009
Posts: 1
401k/Non-deductible IRA Question, please

Hi all:

I am not a tax pro so help is appreciated. My spouse and I have combined inc. >166k. We each maximize 401k contributions at 15,500 (both under 50).

We each have some rollover IRA $ existing. (app. 30-40k each).

I am trying to determine where to invest additional income. Reading about the 2010 provision that removes upper income limit on Roth conversions, I think we should each contribute 5k/yr. in 08 and 09 to new, nondeductible IRAs and then convert them to roth's in 2010.

I do realize that iras are aggregated and that tax would be calculated as the percentage that is pre/total.

My questions:

1. Is this allowable? (401k AND nondeductible IRA or is the 15,500 limit THE LIMIT)

2. Could I take all pre-tax IRA and roll them into our current 401 qualified plan, thus eliminating majority of taxes when I do the roth conversion? (our plan does allow this)

3. Is this all worthwhile or are there simpler, tax efficient approaches?

I very much appreciate the feedback from one and all.

Thanks,
Joe



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
401K help Please! daisy1950 IRA/Sep 5 01-30-2009 10:27 PM
How does one calculate the tax liability for a premature 401k distribution? Tertard IRA/Sep 0 06-19-2008 08:56 AM
401k what form do I need to file with my 1040A? jleach48 IRA/Sep 1 02-07-2008 11:51 PM
If I Use My 401k For A Down Payment On A House And I Sell The House Within 4 Months ? anunez IRA/Sep 1 06-03-2007 02:34 AM
401K - Foreign Country Employees george IRA/Sep 1 01-16-2007 02:20 AM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning
 
 
 

» Recent Tax Q&A
No Threads to Display.