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Classic IRA

December 5th, 2005 at 07:44 am

Thank you retire@50!

Took a look at the official IRS publication for IRAs

Text is http://www.irs.gov/pub/irs-pdf/p590.pdf and Link is
http://www.irs.gov/pub/irs-pdf/p590.pdf. I made under $40,000 this year, including dividends and interest which right now isn't that much. I'm at the high end (it appears that $45,000 is the cutoff), but the traditional IRA is what I'm looking for. Since I can do it - I'm going to the limit at $4,000.

I asked Vanguard to mail me some info. I have a little time and I want to pull it from my ING account, which is going to the de facto antechamber for the family gifts and the inheritance. It'll be the first project that my inheritance money is going to. I decided that the big lump of money will go to Vanguard unless they mishandle the little IRA, so it will be a test for them too.

Speaking of ING, I figured out how to make a sub account so now I have the family gifts and the kiss my a** fund separated. Its important to me - otherwise its the family kiss my a** gift fund. That was 10 years ago. Smile Thanks to mymoneyblog, I found out what the routing number of ING is. I'm not really interested in pulling 4000$ back into my checking account.

2 Responses to “Classic IRA”

  1. Anonymous Says:
    1133827151

    If you made $40,000, you are able to open a ROTH IRA. This is an IRA using post tax dollars. Since you are in such a low bracket this is no problem. All money grown in the Roth is tax free the rest of your life and may be passed on to your children tax free. Always fund the ROTH before any other retirement unless an employer has a matching fund provision

  2. Anonymous Says:
    1133841265

    Thanks, suedavids - I know I can fund a ROTH Ira. However, I already fund a matching 403B and this year, I'll need that little tax break that the classic ira will give.

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