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March 3, 2009

I am 39 years old, and eligible to make a contribution of up to $ 2,000 to a Roth IRA. Can I contribute the difference to a Traditional IRA?

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I am 39 years old, and eligible to make a contribution of up to $ 2,000 to a Roth IRA. Can I contribute the difference to a Traditional IRA?

I am 39 years old, and eligible to make a contribution of up to $ 2,000 to a Roth IRA. Can I contribute the difference to a Traditional IRA?

Yes. You may contribute the difference of $3,000 ($5,000- $2,000) to your Traditional IRA. In fact, many individuals split their IRA contributions between both types of IRAs, so as to receive the benefits of both types of IRAs, i.e. the deductibility for the Traditional IRA contribution- if eligible, and the potential tax-free growth of the Roth IRA. ( This is the limit for 2008 and 2009)

Written By

Denise Appleby

Denise is CEO of Appleby Retirement Consulting Inc., a firm that provides IRA resources for financial/ tax/legal professionals. She has over 20 years of experience in the retirement plans field, which includes training and technical consultation.

Denise writes and publishes educational /marketing tools for advisors; available at http://irapublications.com. Denise co-authored several books on IRAs

Denise is a graduate of The John Marshall Law School, where she obtained a Masters of Jurisprudence in Employee Benefits, and has earned 5 professional retirement designations.
She has appeared on numerous media programs, sharing her insights on retirement tax laws.

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