Can I continue keeping a traditional IRA without cashing it in,  and start a Roth IRA begining 2006.?
468645
Yes you can absolutely.  they are two different animals.  A traditional IRA is funded with before tax dollars and a Roth IRA is funded with after tax dollars. A disbursement from a traditional IRA is taxed, and disbursement from a Roth IRA is not.
62750
if you have a roth and you are no longer working for the company that started your old 401k then roll your 401k into the roth. but if you are with a company and they can match your 401 then keep it
31570
Yes you can. Check with a financial planner and or an accountant though. Depending on your income you may not qualify for a deductible ira or a roth ira.
474413
It stays there until you move it.  You can roll it over to another 401k or IRA or withdraw it with tax consequences.
747829
Mentally NO!  Financially YES!  I max out my 401K & have maxed out my Roth IRA every year!  Not to mention life insurance!  Did I mention I have been doing this since I was 22?
266753
You should be able to roll over a 401k into an IRA without a problem.  Those Prudential people just don't want to lose your business.  Your money guy at the new place should be able to take care of all this for you.  And if he can't, find a new money guy.\n\n(Unless you bought some sort of annuity with it.  I can't tell if you did.)
251243
If you don't have the option of a 401(k) plan, how about investing in a roth IRA?  You can open one in your bank or online.  It's never too early to start investing for retirement.
725173
First of all, 401(k) contributions and IRA contributions do not figure into itemized deductions.\n\nIf your joint income was over $85,000, you are not eligible to deduct anything for 2006 for an IRA contribution. Your participation in the 401(k) during the early part of the year cannot be undone. If your joint income is under $75,000, you may still make a deductible IRA contribution; and if it is over $75,000 but less than $85,000 the amount of the allowed deduction will be limited.
621112
You can only contribute to an IRA from "earned income" up to certain limits depending on your age.  Capital gains and interest does not count toward earned income.  If all you earn in 2006 is $500 then you can put that $500 into an IRA but no more then that.
341439
You can beginning making withdrawals from an IRA without penalty at age 59 1/2 (you still have to pay regular income taxes, unless it's a Roth IRA).  See the following government publication:\n\nwww.irs.gov/pub/irs-pdf/p590.pdf
144789
Yes you can, but if your employer offers a 401k, a contribution to a traditional IRA may not be tax deductible.  Go to www.irs.gov and download publication 590 for the details.
223875
no. what happens in the IRA stays in the IRA, to borrow from the Vegas commercial.... it will be taxed as ordinary income when you withdraw it at retirement, unless it is a Roth IRA.
123484
I agree, A ROTH IRA makes more sense in a lower-middle class income situation.  You don't really need an income tax deduction right now.\n\nThere IS a reason to open a traditional ira, however.  If you were in a high tax bracket, you would be able to lower your reported income by $4,000 this year (or $5,000 if you are over 50 years), thus potentially lowering your tax bracket.\n\nIf you have a 401k at work, ask about the brand new ROTH 401k, which puts after tax money into a 401k for you.  Again, this would be perfect in your situation, since you could put away more than $4,000 (up to $15,000 this year) and the money would come out tax free at retirement, when you could potentially be in a higher tax bracket.
1049878
Yes, you may contribute to your company's 401(k) and max our your Roth IRA.  \n\nYour contribution limits to the 401(k) are $15,000 in 2006.  If you are over the age of 50, you may contribute an ADDITIONAL $5,000 to your 401(k) plan.\n\nYour contribution limits to the Roth IRA are $4,000 in 2006.  If you are over the age of 50, you may contribute an ADDITIONAL $1,000 to your Roth IRA.\n\nJust a reminder, almost all retirement contributions are subject to overarching limits set forth in IRS code Section 415. Please speak with a qualified tax advisor for more information before maxing out your 401(k) and Roth IRA.
743638
Only if you are a first time home buyer, then you can use IRA funds without penalty (see http://www.irs.gov/taxtopics/tc558.html ).  \n\nBest wishes.
949229
Good Question. In 2006 you can contribute $15000 to your 401k regardless on employer match. If your over 50 years old you can contribute an addional $5000. All those contributions will lower your marginal tax rate. Therefore you could reduce your income in regard to ROTH IRA limits. You should check with your CPA first. If you are over the limit for Roth contribution you will get hit with penalties from the IRS. Another option is the ROTH 401K. Ask your employer if that is an option. You can put in $15000 per year with no income limit.  You can email me on this subject if you have more questions.
7230
The Roth 401k retirement plan is basically a traditional 401k that is not bound by income thresholds, and is supplemented with the Roth IRA benefit of tax-free growth and withdrawals.  It's coming January 1, 2006.  You can put away up to $15,000 in after-tax money into a Roth 401(k) account and it will grow tax free forever!\n\nOnly about 17% of companies will have this option available in 2006.\n\nHere is some more information I found on the internet:\n\nhttp://roth-401k-forum.com/