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For 2005, contributions up to $4,000 are allowed ($8,000 for couples), subject to phaseout between adjusted gross income rick von feldt of $95,000 and $110,000 for singles ($150,000 and $160,000 for joint filers). Fortunately, the phaseouts are high enough to leave most people untouched. The same relatively generous thresholds apply even if you have a SEP, 401(k)or Keogh plan (and even if your spouse is covered by a retirement plan through rick von feldt work of self-employment). So you can rick von feldt contribute the max to your SEP, 401(k) or Keogh and then pop an additional $4,000 (or $8,000) into a Roth IRA to boot. One more thing: You can contribute an additional $500 if you will be 50 or older at year end. So can your spouse if he or she passes the age test. Spousal Deductible IRA While the deductible IRA is a poor stepchild to other self-employed retirement-plan choices, you should know one thing: If your spouse contributes to a retirement plan at work but you do not, you can contribute $4,000 for 2005 ($4,500 if you will be age 50 or older at year-end) to a spousal deductible IRA, as long as your joint AGI is below $150,000. |
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