<needin4mation[at]gmail.com> wrote

- quote -

You can have as many IRA's as you like, just as long as you
don't contribute more than the annual limt to them -
combined.

So, you ~could~ have 3000 IRA's and contribute $1 to each of
them, but why?

As far as other investment / savings options, there is
nothing wrong with investing in after-tax investments like a
mutual fund, stocks, bonds, etc.

Talk to your financial advisor for - well - advice.

--
Paul A. Thomas, CPA
Athens, Georgia

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

- quote -

This issue involves calculating the amount of a series of
Substantially Equal Payments Plan distributions to avoid
paying the 10% early distribution excise tax.

No need to aggregate unless there was a Form 8606 filed to
report nondeductible contributions or other means of
assigning tax basis to an IRA. If there is tax basis in any
traditional IRA account then you must use Form 86506 to
aggregate and determine taxable amount of the distribution
and new basis in the traditional IRA.

But if we were discussing, and we were not, the amount of
the Required Minimum Distribution from the traditional IRA,
then yes, that calculation requires figuring the RMD for
each traditional IRA account separately and adding those
RMDs together. The resulting RMD can then be taken from on
or more accounts.

__
Art Kamlet ArtKamlet [at] AOL.com Columbus OH K2PZH

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== >

- quote -

You need to aggregate to determine _minimum_ withdrawal once
you reach 70.5.

Seth

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== >

This seems to conflict with the other advice that all needs to be
aggregated for the computation?

--
Joe Leikhim K4SAT
"The RFI-EMI-GUY"

"Follow The Money"

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== >

**THE-RFI-EMI-GUY** <rhyolite[at]nettally.com> wrote:

- quote -

To avoid the penalty you have to take substantially equal
withdrawals for a minimum number of years. It doesn't
matter whether they come from one account or several
accounts, nor does the total balance of all accounts (or the
balance of the account withdrawn from) enter into it (except
that if the total balance is too low you'll be unable to
continue the substantially equal withdrawals for long
enough; some people were trapped by that when the stock
market fell).

Seth

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== >

"Andrew" <andrew[at]jkl.com> wrote:
- quote -

Perhaps the OP didn't use an inflation factor either.

--
Vic Roberts
Replace xxx with vdr in e-mail address.

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== >

Victor Roberts wrote:
- quote -

Vic - you're right without (as mine was doing by default)
taking into account inflation. I had an inflation factor
thrown in there as part of the retirement calculation. My
figures were in today's dollars adjusted for inflation,
yours were without inflation.

--
----------------------------- Regards -

- Andrew

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== >

**THE-RFI-EMI-GUY** wrote:

- quote -

Ed Slott addresses this in his recent book on IRAs.

You may choose the one account to calculate the withdrawals.
Say you have a $1M IRA. You want to take an annual
withdrawal (need to be for 5 years, I believe or till after
59-1/2 whichever comes second). You decide to take an
ammount that a $200K account would cover, so you ask your
broker to open another account, direct him to transfer the
$200K and you may now take the withdrawals based on the
$200K balance.

Two years later you decide you need more money. You can
split the $1M (the original account left with $800K surely
grew to $1M after 2 years, right?) again into whatever two
balances you need to start this again. A bit of tracking is
all that's needed.

Short answer - Yes, one account.

JOE

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== >

**THE-RFI-EMI-GUY** wrote:

- quote -

First remember that there's no difference between a SEP and
an IRA, since SEP contributions are funded into and with an
IRA account.

You can take withdrawal from only one account, but all must
be aggregated to do the calculation.

ChEAr$,
Harlan Lunsford, EA n LA

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== >

**THE-RFI-EMI-GUY** <rhyolite[at]nettally.com> wrote:

- quote -

As far as taxes are concerned, all your IRAs are treated as
a combined entity.

--
Barry Margolin, barmar[at]alum.mit.edu
Arlington, MA

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== >

"Anne Watson" <anneb3[at]mindspring.com> wrote:

- quote -

The only problem is that I am well past 35 :-) I assume
you were responding to another person.

--
Vic Roberts
Replace xxx with vdr in e-mail address.

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== >

Vic Dura <vpdura[at]CLUTTERhiwaay.net> wrote:
- quote -

Yes. And the 401K limit is indexed, I think, so it should
increase in the future.

--
Barry Margolin, barmar[at]alum.mit.edu
Arlington, MA

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== >

What if I have various IRA's and SEP accounts and wish to
withdraw early from one account taking substantially equal
deductions as permitted (72T??) Can I do this from only
one account or does the law require me to consider the sum
total of all the accounts when calculating?

--
Joe Leikhim K4SAT
"The RFI-EMI-GUY"

"Follow The Money"

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== >

rick++ wrote:

- quote -

Rick, the 2005-2007 limit is $4000
2008-2010 it's $5,000.

On 12/31/2010, the limits expire along with much of the
other provision of the new tax code I've been trying to
memorize.

You may be thinking of 401(k) limits which now are 2005 =
$14,000, 2006 = $15,000, and 2007 on are set to increase in
the 500 increments indexed for inflation. (So if I read
correctly, if 2006 inflation is under 3-1/3%, there would be
no icrease till '07.)

JOE

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== >

- quote -

Just to add a few more dollars-isn't the money you put in
each years IRA contribution tax free?

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== >

"Andrew" <andrew[at]jkl.com> wrote:
- quote -

Well, your calculator may need new batteries. I'm using an
HP financial calculator (the one built into the HP 200LX)
with the following assumptions:

Number of periods = 30
Annual Interest = 10%
Present Value = $0
Payment = $3000
Payments per Year = 1
Begin/End Mode = End

This gives a Future Value of $493,482.07

--
Vic Roberts
Replace xxx with vdr in e-mail address.

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== >

1) The contribution is $4000 per year. It jumps $500 every
every COLA acumulates an equivalent percentage.
2) Historically you should increase you money about 15 times
in 30 years just parking in a market index fund.
3) They are many alternatives for tax-deferred savings-
401Ks, index funds (they rarely sell their contents),
real estate, insurance annuities ...
4) Its likely the US government will reform tax-deferred or
tax-free savings accounts in the not too far future. The
idea idea is to simplify the current mess of a dozen kind
of such accounts in to one kind with some sort of large
annual limit.
5) Saving and investing after taxes isnt a bad idea too.
6) In 30 years retirement age will be increased to at least
69, so you will have time to save more!

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== >

From what I have read an IRA can only have up to $3000 a
year put in it. I am 35 so that doesn't give me a ton of
money by 65, only 400k - 500k. Can I have more than one IRA
to make more money or am I "supposed" to do something else
to invest my money? Thank you. ---needin4mat

Andy replies:

You can have many IRAs. The contribution limit does not
change, however.

Having many IRAs is a good idea, since there is a limit to
the amount of insurance that a bank or brokerage has on each
account. And it is a lot less than 500K.

In my opinion, your IRA should be bulletproof, since when
you finally need it, it had BETTER be there. At that point
in your life, you will probably be too old, or too burned
out, to start over.....

I suggest you find the insurance limits of each brokerage
house or bank, and tailor your accounts to never exceed
these amounts.

Remember, the insured account INCLUDES interest credited to
the account, and in 30 years that will be a hell of a lot of
interest...... So, when you get near the insurance limit,
stop contributing there and periodically transfer amounts
into another IRA account. Don't go past the insured
limits....

One method is to use a brokerage house like Smith Barney to
make sure all of your dough goes into separate FDIC insured
institutions.

Andy

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== >

Barry Margolin wrote:
- quote -

Barry, spring ahead a year, you quoted 2004 limits.
2005 = $14000 for 401(k) and $4000 for IRA
OP is 35, but for over 50, the 401 had extra 'catch-up' of
$4000, and IRA, $500.

With a myriad of changes proposed, OP should take advantage
where he can and look forward to new plans allowing higher
savings.

JOE

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== >

Barry Margolin <barmar[at]alum.mit.edu> wrote:

- quote -

Is the $13k allowed in the 401K in addition to the $3k ($4k
in 2005) allowed in the IRA?

--
To email me directly, remove CLUTTER.

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== >