Hi everybody come on in I’m Ken Dolan the big guy I guess you knew that. And I’m glad you’re joining us here on Dolans.com and I hope to tell your friends and neighbors about it this because we’re very proud of the service and the information.
Okay the thing I want to talk about with you for a couple of minutes today is a question we get all the time on when we do guest appearance on TV and of course our weekly national radio show.
Then say “Hey Dolan, I don’t know how to pick the right retirement plan for my family”. Well it is tough to answer the question without knowing more usually the kind of moment of time we can spend on the radio with a phone call. So it’s little hard to do it to video but I’m going to try it if you do a couple of things.
Number one, to inform you of the plans for this year some of the numbers for this year that maybe your employer didn’t tell you. Number one and then number two to then sent you to really do something. First of all no surprise, traditional IRA start I guess early 80’s I think 1981.
The 2008 numbers that you can contribute $5,000 to up to $5,000 assuming that you have at least $5,000 of earned income and if you’re over 50 then you put in $6,000, you really whacking not to do this if you’re qualified for. And if you’re not covered on the plan, you’ll qualify for an IRA this is a traditional IRA. The deductible traditional IRA, even if you are covered by a plan.
A lot of people say “I’m cover by a plan, I can’t do an IRA”. That’s not true, basically if you are in between $53,000.00 and $63,000.00 filing singly and are covered by a plan you’re still qualified to some degree or another. For deductible IRA, filing jointly it’s about $85 to a $105,000.00, over a $105,000.00 there is none between $85,000.00 and $105,000.00 you got partially deduction on an IRA.
So don’t anybody tell you that arbitrarily you are covered with 401k or 403b you can’t do IRA. It’s not true within certain limits.
Something we like a lot is a rough IRA and you’ve heard people talk about it, it’s a tax free IRA. Which, basically means you put in after tax dollars and guess what? See you Uncle Sam the money that grows for the rest of your life is tax free. And even greater for you heirs is a whole other story which we will talk about.
Now who qualifies of rough IRA? If you’re filing singly between $99,000.00 and a $114,000.00 stops at a $114, 000.00 and between $99,000.00 and $114,000.00 there’s at least partial amount of money you can put away.
$5,000.00 is the top limit for now 2008, $6,000.00 if you’re over 50. Filing jointly the numbers are 156,000 to 166,000 over 166 at the moment you’re a business. But between below 156 you are in good shape, and between 156 and 166 you’ve got a partial deduction.
Rough IRA’s for a lot of people we really like them 401k and 403b’s $15,500.00. Is the amount of that you can put in for the course of 2008. And the numbers changes for most every year $15,500.00 differed compensation plan, maximum salary deferral $15,500.00 in a 457 plan.
Now I know a lot of this gobbly-gooked with numbers flying around. But let it’s suffice to say that you are really short circuiting yourself and short selling yourself and your family long term. If you don’t participate in one or more of this plans and one quick thing I got to tell you. If you are self-employed or have self-employment income maybe you do work on the weekends. Maybe you do work at night for your own little company then you should be aware of the fact that there is a whole—it’s almost a reason to start a business. There’s a whole lot other setup wonderful tax deductions for qualified plans you could learn about self-employed.
I want you look for IRS publication 334, which called Tax Guide for Small Businesses. You can get it at IRS.gov. You can look at score our good friends at score the score the service core of retired executives. The Americans, they’re councils for Americasmallbusiness.org.
Publication 334 tax guide for small businesses great stuff there, Traditional IRA, Deductible IRA, Rough IRA, 401k, 403b, 457 plan and taxes with the self-employed don’t overlook this stuff I’m telling you, you’re be making a big mistake.
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