I've several tax-related questions. Background: (a) I just became eligible in my job to participate in the firm's 401K program--the firm makes a 3% contribution--since I'm over 50 (I'm 57), I'm told I can contribute a maximum of $20,500 during 2007; (b) I have a traditional IRA from the past; and (c) I also am self-employed in addition to working for the firm. My questions are: (1) Since I have ample assets, would it not make sense to immediately start contributing my ENTIRE salary into the 401K until I max out the $20,500 limit? (2) Related to #1, would it not make sense to change my withholding so that nothing is withheld, eg so that the entire amount of my gross is contributed to the 401K? (3) Is there any reason why I should not "roll over" my traditional IRA to the 401K? (4) Am I able to make a contribution to my IRA in addition to my contribution to the 401K? (5) If I don't roll over my IRA, should I convert it to a Roth?
posted by america4
on Jul 7, 2007 -