This preview shows page 1. Sign up to view the full content.
Unformatted text preview: your traditional IRA or $1,500 in your Roth IRA. There may be an additional administrative step needed so that the trustee which holds the IRA proceeds actually retitles or transfers the $3,500 Traditional proceeds into the Roth category for their internal bookkeeping to survive an IRS audit. The amount of the IRA contributions (both Traditional and Roth) that can be deducted from current-year taxes is partially reduced for levels of income beyond a threshold, and eliminated entirely beyond another threshold, if the contributor and/or the contributor's spouse is covered by an employer-based retirement plan. The dollar amounts of the thresholds vary depending on tax filing status (single, married, etc.) and on which spouse is covered at work. See IRS Publication 590, "Individual Retirement Arrangements"....
View Full Document
- Spring '12