Comments on: contributing to retirement plane to reduce taxable income? http://www.talkaboutretirement.net/united-states/contributing-to-retirement-plane-to-reduce-taxable-income/ Issues concerns retirement and retired living Fri, 10 Feb 2012 05:24:14 +0000 http://wordpress.org/?v=2.6.3 By: puZZEld http://www.talkaboutretirement.net/united-states/contributing-to-retirement-plane-to-reduce-taxable-income/#comment-161 puZZEld Sun, 26 Oct 2008 03:34:38 +0000 http://www.talkaboutretirement.net/united-states/contributing-to-retirement-plane-to-reduce-taxable-income/#comment-161 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. 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.

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