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Old 10-22-2017, 10:08 PM
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IRA contributions with 457 and 414 accounts.

Hello,

My spouse has two plans at work, a 414(h) and a 457(b). She has maxed out her contribution to the 414 and is only doing a small amount to the 457.

She also has a Roth IRA at Vanguard that she is maxing out this year.

I am not working at this time and may not go back to work.

She was recently put into the position of interim executive director where she works. This included a large pay raise. It is likely she will hold this position until it is filled, as which point she may retire. It will take upwards of 6 months to a year to fill the position.

Can she also have an IRA in addition to the Roth with Vanguard? Would the contributions be pretax? We would prefer to use an IRA with Vanguard vs. maxing out the 457 due to the 457 having mutual fund options with high Expense Ratios. However if that is our only option then maybe we go that way.

Best wishes,

Me....


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Old 10-24-2017, 09:44 AM
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Quote:
Originally Posted by Diogenes View Post
.

1.Can she also have an IRA in addition to the Roth with Vanguard?



2. Would the contributions be pretax?


1. Can she also have an IRA in addition to the Roth with Vanguard? ========>yes she can however, she may not deduct her contributions to her Ira; your contributions you make to a traditional IRA account may entitle you to a tax deduction each year.

Traditional IRA, is asyou know tax-deferred, meaning that you don?t have to pay tax on any interest or other gains the account earns until you withdrawal the money. Additionally, the contributions you make to the account may entitle you to a tax deduction each year. However, the Internal Revenue Service restricts who can claim a tax deduction for contributions to traditional IRAs based on various factors.everyone is eligible to make contributions to a traditional IRA, but a tax deduction for those contributions may not always be available. If you or your spouse contributes to an employer-sponsored retirement plan, such as a 457b and your Modified Adjusted Gross Income exceeds annual limits, you may need to reduce or entirely eliminate your IRA deduction. If you and your spouse are not eligible to contribute to an employer plan, you can deduct your contribution as long as you earn income during the year

2.
Would the contributions be pretax?=======>>it depends. If you're participating in your 457 plan, you might not be able to deduct your traditional IRA contributions. Your 457 counts as an employer-sponsored plan, so if your modified adjusted gross income exceeds the limits, your IRA contribution deduction disappears; I men NO LONGER PRETAX. For married couples filing joint returns, a spouse covered by a 457 gets a full IRA deduction only with joint income below MAGI; SO YOU NEED TO TALK TO A RETIREMENT plan admin for more professional help.



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Old 10-24-2017, 05:37 PM
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Join Date: Feb 2017
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Thank you for your reply. I am currently looking for a "Fee for Service" tax accountant with CFP credentials.

Not too many that can claim that in central Oklahoma.



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