Let’s Talk About Retirement

contributing to retirement plane to reduce taxable income?

Posted by Retirement Advisor

epson30 asked:


How does 401K and pre tax IRA work with max contributions for 2008 tax year? I know max 401k is $15,500 (Im only 40yrs). How much can be contributed to an IRA after 15500? How about a non working wife what can she contribute to a retirement plan?

DUANE

Share and Enjoy:

• 
• 
• 
• 
• 
• 

This entry was posted on Thursday, October 23rd, 2008 at 10:17 am and is filed under United States. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

« If you never save for retirement, what happens to you? How much SHOULD you invest?

Retirement Myths Unlocked »

One Response to “contributing to retirement plane to reduce taxable income?”

1. puZZEld Says:
   October 25th, 2008 at 10:34 pm

   For pre-tax IRA , you will need to meet threshold limits set by the IRS. The limit for 2007 is $4000 . You and your wife can contribute $4000 “each” if and only if you meet the threshold limit. Limit of IRA contributions are not affected by 401k contributions and vice versa.

   Personally, I would look at the Roth IRA. Withdrawals from both the 401k and pretax IRA are taxed when you retire but withdrawals from the Roth IRA is tax free.

   Check the following IRS website.