"nish" wrote:

- quote -

No. You won't actually be deducting the SIMPLE contribution on your return.
Your employer will reflect it in Box 1 of your W-2.

- quote -

If you're under 70 1/2 you can make some sort of IRA contribution on top of
the SIMPLE. Details on Roth income limits and deductibility of traditional
IRA contributions are in IRS Publication 590. Because of the SIMPLE you are
"covered" by a retirement plan.

<snip
- quote -

Yes.

- quote -

There's also a percentage limitation on your SEP contribution. See IRS
Publication 560.

--
Phil Marti
Clarksburg, MD

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

nisha[at]nunya.org (nish) posted:

(Entirety of request for various IRA contribution limits included in OP,
above.)

The answers to all of your questions are available in Publication 590,
which can be read online at http://www.irs.gov . Choose the HTML
version for online reading. Or, you can obtain a copy from IRS at your
local office, or via mail, upon request.

Because there are many different income limitations and other
restrictions which depend upon your age, marital status, employer
retirement program participation, etc., it's really difficult to provide
accurate answers for your specific situation.

Bill

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

Through my employer I have a Simple IRA plan, and I understand I can
contribute up to $10.5K of salary into that for 2008.

Some related issues I don't understand:

1) Is there some Income / AGI for the Simple IRA above which you cannot
deduct the contribution?

2) Can I separately set up and fund both a Roth IRA and Traditional IRA and
contribute to those, in addition to the $10.5K contributed to Simple IRA?
Apparently Roth IRAs are limited to people who make under $100K AGI if you
file single? If you make more than the limit for Roth IRA, can you still
contribute $5K to the Traditional IRA? If not, what are limitations for
additional contributions to Traditional IRA?

3) Assuming you have a sole proprietorship that is independent of your day
job and have a SEP IRA connected with that sole proprietorship, are you
allowed to contribute anything to that SEP IRA in addition to the Simple IRA
you contribute to through work? I see that the contribution limit on a SEP
IRA is at $46K, which is obviously very attractive by comparison to the
$10.5K limit for the Simple IRA. Assuming you cannot take both
contributions, would you have the ability to choose the better of the two,
or would the mere availability of the Simple IRA in one job preclude
participation in a SEP IRA in the sole proprietorship?

nish

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >