Retirement plan contribution

[arist...@hotmail.com]

I am 62 years old and started working last month. My gross income for
2006 will be $6000. There are no retirement or medical benefits where
I work. Being 62 can I open my own retirement plan this year and what
is the maximum mount of the $6000 I can place in the retirement account
trying to play catch-up.

[Phil Marti]

"malib...@verizon.net" <arist...@hotmail.com> wrote:

For 2006 $5,000. For 2007, $5,500. See IRS Publication 590. (The 2007
inflation adjustments have been announced, and the IRA contribution limit
without the age-related catch-up contribution goes to $4,500 in 2007.)

Because you're not covered by a retirement plan at work you can deduct a
traditional IRA contribution unless you're married and your joint income
exceeds $150,000 and your spouse is covered by a retirement plan. Before
you do this, make sure there's a tax advantage to doing so. It may be in
your better interest to make a nondeductible Roth IRA contribution,
depending on your other taxable income.
--
Phil Marti
Clarksburg, MD

[arist...@hotmail.com]

IF MY TAKE HOME PAY FROM THE $5000 WAS ONLY $4200 CAN I STILL PLACE
$5000 IN MY NEW IRA

[Phil Marti]

"malib...@verizon.net" <arist...@hotmail.com> wrote:

> IF MY TAKE HOME PAY FROM THE $5000 WAS ONLY $4200 CAN I STILL PLACE
> $5000 IN MY NEW IRA

It depends on what the $800 deductions were for. If it was all taxes it
doesn't affect your contribution limit. If it's something like a pre-tax
cafeteria plan deduction, it does.

[Arthur Kamlet]

In article <1164223268.5...@e3g2000cwe.googlegroups.com>,

It will not be more than the lower of 5000 or box 1 of your W-2 form.
--

__
Art Kamlet ArtKamlet @ AOL.com Columbus OH K2PZH