Traditional IRA?

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Traditional IRA?

Postby holycow2013 » Sat Feb 09, 2013 12:18 pm

Dear Bogleheads,

Question

I have been trying to get this information but does not show up well in my search

If I max out 401K and Roth, Should I open a traditional IRA and contribute if I can afford one? My 2011 MAGI income was less than 103K and If I am seeing it right 2012 will be less as well because I am maxing out my 401K in 2012 which I did not in 2011.

thanks in advance
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Re: Traditional IRA?

Postby livesoft » Sat Feb 09, 2013 12:23 pm

No you should not. First, if one makes a maximum contribution to a Roth IRA, then they cannot contribute to a traditional IRA. Please read all the pages in this IRS publication: http://www.irs.gov/pub/irs-pdf/p590.pdf
It's all about short-term opportunistic rebalancing due to a short-term change in one's asset allocation, uh, I mean opportunistic rebalancing, uh I mean rebalancing, uh I mean market timing.
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Re: Traditional IRA?

Postby Toons » Sat Feb 09, 2013 12:58 pm

"One does not accumulate but eliminate. It is not daily increase but daily decrease. The height of cultivation always runs to simplicity" –Bruce Lee
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Re: Traditional IRA?

Postby holycow2013 » Sat Feb 09, 2013 6:25 pm

thanks guys for clearing it up
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