You can contribute to a traditional or Roth IRA even if you participate in another retirement plan through your employer or company. However, you may not be able to deduct all of your traditional IRA contributions if you or your spouse participate in another retirement plan at work. For example, due to administrative burdens, many IRA trustees don't allow IRA owners to invest IRA funds in real estate. IRA investments in other unconventional assets, such as limited liability companies and real estate, risk disqualifying the IRA due to prohibited transaction rules that prohibit self-trading.
However, you must use Form 8606 to declare the amounts you have converted from a traditional IRA, SEP, or simple IRA to a Roth IRA. Gold and other ingots are collectibles under the IRA statutes, and the law discourages the possession of collectibles in IRAs. To recharacterize a regular contribution to an IRA, you ask the administrator of the financial institution holding your IRA to transfer the amount of the contribution plus earnings to a different type of IRA (either a Roth or traditional one) through a transfer from trustee to trustee or to a different type of IRA with the same trustee. If you had a SIMPLE IRA or an SEP IRA but have retired from that job, you can still open an IRA through investment firms such as Vanguard or Fidelity.
In general, a qualified charitable distribution is a taxable distribution of an IRA (other than an ongoing SEP or SIMPLE IRA) owned by a person aged 70 and a half or older and that is paid directly from the IRA to a qualified charity. Do not use Form 8606, Non-Deductible IRAs (PDF/PDF, Non-Deductible IRAs) to declare non-deductible contributions to a Roth IRA. A requalification allows you to treat a regular contribution made to a Roth IRA or a traditional IRA as if it had been made to another type of IRA. The only divorce-related exception for IRAs is if you transfer your interest in the IRA to a spouse or former spouse and the transfer is made under an instrument of divorce or separation (see section 408 (d) () of the IRC.
Your total contributions to your IRA and your spouse's IRA cannot exceed your combined taxable income or the annual IRA contribution limit multiplied by two, whichever is less. If you are retired and your spouse has earned income, he or she can contribute to their own IRA and also make what is called a spousal contribution to your IRA.