topic IRA Contribution Constraints in Retirement tax questions

IRA Contribution Constraints

bnwbass — Tue, 04 Jun 2019 23:21:52 GMT

I am considering a IRA contribution for the first time to lower my tax situation. What are the rules or constraints for such a contribution. Example, must I keep the IRA untouched for a predetermined amount of time before I can claim any benefit from the IRA account? How long before I can execute IRA disbursement if i need it?

In reality, you always have access to your funds that are...

Ashby — Tue, 04 Jun 2019 23:21:54 GMT

In reality, you always have access to your funds that are held in the IRA. The question is how much will it cost you?

If you are under 59-1/2 and withdraw money from an IRA, those funds are taxed at your regular income tax rate plus a 10% penalty.

After 59-1/2, a traditional IRA does not carry the penalty, just normal tax.

Be careful, if you or your spouse (if you have one) are covered by a retirement plan from an employer, there are income limits that can make you ineligible for a deduction.

Thank you, I am finding now that because i'm covered by a...

bnwbass — Tue, 04 Jun 2019 23:21:55 GMT

Thank you, I am finding now that because i'm covered by a retirement plan from an employer, and with income limits we ineligible for a deduction. Leads me to the decision of filing separate and not joint married. Either way I am over the limit but my spouse on her own is not. Is this a viable option to file separately and claim the IRA contribution for only her?