Maximum contributions to Roth, deductible and non-deductible IRAs

[Guest Lyric]

I absolutely hate the choices I have in my nonprofit employer's 403(B) plan, which I haven't yet contributed to.

I have contributed the maximum to my Roth IRA for both 1998 and 1999. What are my options if I decide to set up my own retirement plan? There is no employer match in our 403(B), so other than the amount I can put away (up to $10,000, or 20% of earnings), and the fact that it is tax-sheltered, I don't see much benefit to a bad 403(B) that ties me down for the next 10 years at least.

So what are my IRA options in addition to my Roth if I have no other qualified plan? And what would be the maximum I could contribute given that I've already contributed to the Roth?

All suggestions appreciated!

Lyric

[Guest Del Rae]

Lyric, I'm sorry if I'm not understanding your question, but if you've done the maximum of $2,000 with your Roth IRA for 1999, (and you are happy with it), the only additional IRA available is possible education IRAs at $500.

Contributions to a Roth or traditional IRA are combined to total the maximum $2,000 allowed. So you can do $2,000 to a Roth and -0- to a traditional IRA (nondeductible or not), visa-versa, or a combination like $1,000 to each... but either way, the maximum per taxpayer is $2,000 total.

[Guest Lyric]

Del Rae,

Thanks for responding.

You have in fact confirmed what I thought -- that having contributed the maximum to my Roth, I'm out of luck on anything other than my employer's 403(B) or going it alone in a taxable account.

The problem with just relying on IRAs is that the total I can put away each year is $2,000, whereas with qualified plans the amounts range from $10,000 to $30,000. I was looking for another avenue to put more away each year than I can contribute just to my Roth.

I thought that if I was eligible for a qualified plan that I opted not to participate in, there might be some kind of loophole that enabled me to put those same assets into an IRA according to some other provision. After all, people with 401(k)s and 403(B)s can contribute to these AND to IRAs, which means they can put away about $12,000 a year through these plans. Just having my Roth IRA is very limiting.

Seems I shall have to go it alone. Oh well ... sigh ... !