SEP IRA

Archive for May, 2009

Question: How much can I put in my IRA?

I have a Tradtional IRA (rollover), and a SIMPLE IRA with my current Employer. I was told I can put up to 10K in my SIMPLE, and 4000 in my Tradtional. But If I put 4000 in my Tradtional, will I still be able to put 10,000 in my SIMPLE, or am I limited to 6,000?
If I were to open a Roth IRA, is that 4,000 seperate from my Tradtional , or total of all IRA’s is 4,000? What If I own multiple Trational IRA’s can I put 8000 (4000 a piece) in two of them?

Answer: You have two different IRA accounts, one that you personally own (the traditional), and one with your employer (the SIMPLE).

If you put $4000 into a Traditional IRA, you can still put $10,000 into your SIMPLE. Your SIMPLE IRA is similar to a 401k, except that only small businesses can have a SIMPLE IRA.

If you open multiple Traditional IRA and Roth IRA accounts, you can only contribute a TOTAL of $4000 (or $5000). That means, you can’t put $4000 into each account. Plus, it’s not smart to open multiple IRA accounts in the first place since it will be hard to track your investments.

Self-Direction — Can MY SD IRA/401K Purchase Property I Already Own?

Question: Can SEP or IRA be attached in CA for non payment of Alimony?

I can no longer pay Alimony as I have been out of work for close to a year. If I stop paying can my SEP or Rollover IRA be attached or garnished for non payment of Alimony by the Family Court if she files a contempt of court motion? The divorce decree was in CA and X lives there but I am out of state.

Answer: You don’t just stop paying. You file with the court to have your payments suspended.

Your attorney can tell you for sure whether these assets can be attached. California courts have always been aggressive so the risk is there.

Unlimited Power – Anthony Robbins

Question: Minimum employer contributions to SIMPLE IRA Plans?

Hi,
I work at a company with about 15 employees. We have a SIMPLE IRA plan. My boss told us that our company matches our contributions to the plan at a rate of 2%. As he explained it, the company matches $.02 for every dollar that we contribute (up to the $10,000 limit for 2007). But on the IRS website, it states that a company can’t match less than 1% of an employee’s Contribution. If I make $50,000 and put $2,000 into the SIMPLE IRA, my company’s Contribution ($40) represents .08% of my salary. Are employers free to interpret the rules in this manner?

Answer: You already stated that the company matches 2% of your contributions up to the maximum amount allowed by law.

2% is more than 1% so he would be within the law.

Guess I don’t understand your question.