by BreadWithSpam@[EMAIL PROTECTED]
Mar 19, 2008 at 02:14 PM
"learnfpga@[EMAIL PROTECTED]
" <learnfpga@[EMAIL PROTECTED]
> writes:
> I am 30 yrs old married and file my returns jointly. I had 401K
> through my employer in 2007 but my wife did not. So my understanding
> was that I can put $8K (Tax deductible traditional IRA + rothIRA) for
No. You may put a max of $4k in the *combination* of your
Roth and Traditional IRAs.
> my wife. Also I can put $4K (rothIRA) for me. In total $12K for year
> 2007.
Nope. Total for two people - all all Roth + Traditional IRA
contributions - is $8k.
> However Vangaurd says as a couple we can only put $8K. I am not
> doubting Vangaurd but confounded because other websites I go to they
> calculate that I can put in upto $12K.
The other websites are wrong (which are they?). Vanguard's right.
See page 60 of the IRS's Publication 590 which explains the
Roth IRA limits:
...your contribution limit for Roth IRAs generally
is the same as your limite would be if contributions
were made only to Roth IRAs, but then reduced by all
contributions for the year to all IRAs other than
Roth IRAs. Employer contributions under a SEP or
SIMPLE IRA plan do not affect this limit.
http://www.irs.gov/pub/irs-pdf/p590.pdf
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