IRS publication -- maxing out 401k and IRA

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bogleenigma
Posts: 241
Joined: Sun Jul 29, 2012 11:19 pm

IRS publication -- maxing out 401k and IRA

Post by bogleenigma »

Ladies and gents, can you direct me to the IRS publication that states that one can contribute BOTH the max of $17,000 to a Traditional 401k and $5,000 to a Roth IRA (as long as you are within income guidelines) for 2012? My accountant appears to be confused.
linguini
Posts: 262
Joined: Tue Oct 16, 2012 2:49 pm

Re: IRS publication -- maxing out 401k and IRA

Post by linguini »

This is not tax advice, but for informational purposes:

http://www.irs.gov/publications/p590/ch ... 1000230988
TheIndexer
Posts: 38
Joined: Sun Feb 24, 2013 4:33 pm

Re: IRS publication -- maxing out 401k and IRA

Post by TheIndexer »

If your accountant doesn't understand this basic concept, it's time to find a new accountant.
Topic Author
bogleenigma
Posts: 241
Joined: Sun Jul 29, 2012 11:19 pm

Re: IRS publication -- maxing out 401k and IRA

Post by bogleenigma »

TheIndexer wrote:If your accountant doesn't understand this basic concept, it's time to find a new accountant.
I'm beginning to think so. In fairness, there are some major complications in my taxes this year . But I'm beginning to think so. Up until this she has been brilliant (as far as I could tell). The decision making process on that matter is greatly complicated by the fact that she is my deceased mother's best friend. :( So, in getting a new accountant I would be severing a friendship. Sad. Sad.

Christopher
MN Finance
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Re: IRS publication -- maxing out 401k and IRA

Post by MN Finance »

Another vote for a new accountant. This is one of the most basic tax related investment concepts... that IRA limits are separate from 401k/403b limits and both separate from 457 limits.

I wouldn't assume a friendship will break. People leave relationships every day that are both professional and personal in nature. There's likely any easy excuse about location, needs, other opportunities, etc. In fact, as a professional, I would (and have) specifically not do (done) business with someone I know personally.
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zebrafish
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Re: IRS publication -- maxing out 401k and IRA

Post by zebrafish »

This is such a fundamental piece of knowledge that I would strongly question the competence of the accountant.
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