SIMPLE and ROTH

[JoshinNC]

Can a 53 year old employee contribute $5000 to a Roth and $12,000 to a SIMPLE in 2006, provided his MAGI does not exceed the phaseout?

Thanks in advance!

[Bees Knees]

Roth IRAs are not subject to the active participation rules in other qualified plans that would affect traditional IRAs. So you can make Roth IRA contributions while at the same time participate in other plans, such as a SIMPLE IRA. The only restrictions for Roth IRAs would be if modified AGI exceeded $150,000, or the taxpayer also was contributing to a traditional IRA in the same year.

[Unregistered]

that was my thought,

but i wanted to verify.

thanks!

JoshInNC