Who can put money into an IRA?
- What is an IRA?
- What's the difference between Roth and traditional IRAs?
- Why is an IRA a good deal?
- Who can put money into an IRA?
- How much should I put into an IRA?
- When can I access money in my IRA?
- When are IRA withdrawals penalty-free?
- When do I have to start taking the money out of an IRA?
- What if I need the money in my IRA before retirement?
- How should I invest the money?
- How do my IRA withdrawals get taxed in retirement?
- Where should I open an IRA?
- Should I take money from my IRA to pay off debt
It depends on what kind of IRA it is. Almost anyone can contribute to a traditional IRA, provided you (or your spouse) receive taxable income and you are under age 70 ½. But your contributions are tax deductible only if you meet certain qualifications. For more on those qualifications see Who can contribute to a traditional IRA?
Roth IRA contributions are never tax deductible, and you must meet certain income requirements in order to make contributions. For 2008, your modified adjusted gross income must be $159,000 or less if you are married and filing jointly; $101,000 or less if you are single, head of household or married filing separately (and didn't live with your spouse at any point during the year); $10,000 or less if you are married, filing separately and lived with your spouse for any part of the year. Those who make slightly above these limits may still be able to make partial contributions. For more see Who can contribute to a Roth IRA?
SIMPLE and SEP IRAs are for self-employed individuals or small business owners. To set up a SIMPLE IRA an employer must have 100 or fewer employees earning more than $5,000 each. And the employer cannot have any other retirement plan besides the SIMPLE IRA. Any business owner or individual with freelance income can open a SEP IRA.
