<nickravo1[at]gmail.com> wrote:

- quote -

Comprendo.

Now vama to your benefits people and find out the max
percentage and amount per pay period you are able to
contribute. The plan sets the limits, and no one here will
know what it is.

Buena fortuna.

--
Phil Marti
Clarksburg, MD

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A.G. Kalman wrote:
- quote -

Let's say I earn $5K a month as a college professor, and I
tell my payroll person in Decembre that the next caledner
year I am likely leaving my job early and request that they
deduct all they can from my salary each pay period, until my
annual limit is hit (in like April), instead of taking the
payroll deductions over 12 months. That way, if I leave the
job early, I can get the full $20K into my 403b instead of
just 25 percent or so of it, Comprende?

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garagecapital[at]gmail.com wrote:

- quote -

I'm stumped as to how you seem to be in a 403(b) plan that
withholds 80 - 100% of your pay? Typically, an employee's
contribution to a 403(b) is through payroll deduction at a
percentage of your pay. That percentage is never near 80 to
100%. In addition, these contributions from your pay are
typically before tax and reduce your taxable compensation.
To the extent that you have any taxable compensation
reported to you in Box 1 of your W-2, you could make a
contribution to an IRA equal to that taxable amount or $5K,
whichever is lower.

As you actively participated in a retirement plan at work,
your ability to deduct that contribution will depend upon
your modified AGI. See IRS Pub 590 for more details.
http://www.irs.gov/publications/index.html

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Mark Bole wrote:
- quote -

To elaborate on "allowed amount", I forgot to mention the
compensation test. If you had no additional compensation
for the year, nor did your spouse (if any), then no, you are
not allowed a contribution beyond your compensation amount.

-Mark Bole

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garagecapital[at]gmail.com wrote:

- quote -

Yes.

--
Barry Margolin, barmar[at]alum.mit.edu
Arlington, MA
*** PLEASE don't copy me on replies, I'll read them in the group ***

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garagecapital[at]gmail.com wrote:

- quote -

If you were covered for even one day under an employer
retirement plan, it counts for the entire year. The amount
you contributed to the 403b plan in irrelevant.

You can always make a traditional IRA contribution up to the
allowed amount. Given that you were an active participant
in an employer plan, your ability to DEDUCT that
contribution may be limited, depending on your modified
adjusted gross income. There are worksheets available with
most software packages, as well as Table 17-1 of IRS
Publication 17.

If you are married and your spouse was not an active
participant, there may be increased deductiblity if the
contribution is made by the spouse.

-Mark Bole

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<garagecapital[at]gmail.com> wrote:

- quote -

Sure you can put that 5000 into an IRA.

But your AGI will determine if you can deduct it, and if you
cannot deduct it, might want to put it into a Roth IRA.

You are considered covered by a qualified plan even if you
were covered one day in that year. So the AGI phase out for
deducting your IRA contributions for a Single taxpayer
begins at 50,000 and is phased out entirely at 60,000.

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

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garagecapital[at]gmail.com wrote:

- quote -

Both your qualified retirement plan (403b) and IRA must be
funded with "taxable compensation", or earned income. If I
understand your question, you will only have $5K of earnings
in the calendar year, so that is the limit of what can be
contributed -- in toto -- to the two plans.

I guess that makes the answer to your question - NO.

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If I work for my company for the month of Janary and then
quit working for the year (and earn about $5K that month and
$4K-$5K of it goes into a 403b plan), can I also put $5K
into an IRA? (I am over 50.)

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