Comments on: Comprehensive Guide to IRS Income Phase Outs Rules

By: Will B.

Will B. — Tue, 16 Jun 2009 19:45:59 +0000

So I get an “under reporting” notice from the IRA. I contributed $2500 each in 2007 for my wife and I to personally setup IRA’s. Apparently they rejected my wife’s contribution because she was “covered” by a retirement plan at NBC/GE. Even though she never signed anything acknowledging participation and neither her nor NBC/GE ever contributed a single penny.

Somehow this seems totally wrong!

- WB

By: kitty

kitty — Tue, 24 Jul 2007 14:43:30 +0000

The referenced Roth IRA article contains 2006 income limits, not 2007. These went up.

By: Foobarista

Foobarista — Tue, 17 Jul 2007 06:06:33 +0000

SEP-IRA’s don’t have income phaseouts. They aren’t really IRA’s, even though they have those confusing letters.

For example, you can fund both a SEP-IRA and a Roth IRA in the same year. SEP’s are more like self-employed 401K’s in their tax behavior than they are like traditional or Roth IRAs.

(as always, talk to a tax guru, etc…)