On Mar 13, 10:49 am, "rick++" <rick...@[EMAIL PROTECTED]
> wrote:
> On Mar 12, 12:32 pm, marckas...@[EMAIL PROTECTED]
wrote:
>
> > Hello, I have invested in my first 401k for one month (January 2008)
> > before getting laid off.
>
> The 401K adminstrator may force you to rollover the 410K if the amount
> is
> too small. Saves them adminstration overhead.
>
> > Also is it common to see in ones ****tfolio an IRA and Roth IRA?
>
> Yes. But that is often due to income eligibility constraints. In
> good years
> you may not qualify for the a Roth.
>
> Furthermore, because you were covered by an employer's retirement
> plan for at least one day in 2008, an IRA is not deductable if you
> make
> more than $62,000. A Roth has a higher limit.
>
Check IRA rules on this- there was a change for tax year 2007. An IRA
can be deductable if AGI is under ~103k.
>From pub 590:
"Modified AGI limit for traditional IRA contributions increased. For
2007, if you are covered by a retirement plan at work, your deduction
for contributions to a traditional IRA is reduced (phased out) if your
modified AGI is:
More than $83,000 but less than $103,000 for a married couple filing a
joint return or a qualifying widow(er),
More than $52,000 but less than $62,000 for a single individual or
head of household, or
Less than $10,000 for a married individual filing a separate return."
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