SEP IRA

Archive for August, 2006

Question: If my employer funds a SEP IRA in my name, does that impact my Traditional IRA Contribution limit?

Links to sites with information are appreciated.

Answer: These are the rules with it.

For a Traditional IRA, full deductibility of a Contribution for 2006 is available to active participants whose 2006 Adjusted Gross Income (AGI) is $75,000 or less (joint) and $50,000 or less (single); partial deductibility for AGI up to $85,000 (joint) and $60,000 (single). For contributions in tax year 2007, the full deductibility AGI limits are $83,000 or less (joint) and $52,000 or less (single); partial deductibility for AGI up to $103,000 (joint) and $62,000 (single). In addition, full deductibility of a Contribution is available for working or nonworking spouses who are not covered by an employer-sponsored plan whose AGI is less than $150,000 in 2006 and $156,000 in 2007; partial deductibility for AGI up to $160,000 in 2006 and $166,000 in 2007.

5. California Trust Deed Investing: Why Use a Professional Hard Money Broker?

Question: Should you consolidate IRAS, SEP, and 401k?

My wife and I have 4 IRA’s, SEP, and currently 401k.
All at different companies. Should I consolidate? Is there an advantage of not doing it?

Answer: There are advantages to holding them all in one account but without knowing what type of money is held in the IRA’s I can’t tell you to consolidate. Some people have non-deductible contributions in their IRA’s and thus it’s not eligible to roll into the 401k…nor would you want to taint any other money by rolling it into that IRA.

Nor do you provide any detail about what the investment options in your 401k. Can you invest in a brokerage account or are you limited to mutual funds only?

Lastly, some find it easier to use an account for a specific investment objective? i.e. the Merrill Lynch account is strictly a Bond and Cash Equivalent account while the Smith Barney is invested solely in international equities and the ScottTrade account is for US equities. Makes it easier to monitor this way and you can take advantage of the varying fee structures that the entities offer.

Financial Services IRVINE CA: Investments, Mutual Funds, 401k, IRA, Annuity, Life Insurance

Question: KEOGH PLAN Vs. SEP IRA?

Answer: The main reason you might choose to place your money in a Keogh instead of a SIMPLE or simplified employee pension plan (SEP-IRA) is the amount you can save in each plan. The amount you can contribute to a SIMPLE or SEP-IRA is much less than for a Keogh.

Like IRAs, a Keogh lets you grow your savings free of current taxes. You must establish your Keogh plan by the end of the tax year to qualify for tax deductions. Contributions can be made any time until the due date of the employer’s tax return, including extensions.

However, setting up a Keogh can be much more complex than setting up a SIMPLE or SEP-IRA.

The above information came from a New York Life web site (see link, below).

Can I roll over a qualified plan into a properly structured Tax Free Retirement Plan