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Subject:  Re: Some advice please Date:  12/23/2004  12:07 PM
Author:  Fuskie Number:  43690 of 88495

I am a 52 y/o male with 3 kids (one in college/one starting college in 6 months/one starting college in 2 years) (college tuition and other expenses alreay paid for through Pre-Paid Program). I am a stay at home parent. My wife works in the medical profession with an annual salary of $175k - $200K. We have the usual debts of home, credit cards, auto's.

My mother wanted me to becoem a doctor. Who know I could marry one instead! Just a quick note on the Roth elligibility. It is based on AGI (Adjusted Gross Income), so even with a $200k household income from DW, if you have sufficient deductions you may slip in under the radar.

Would you be willing to list your debts (amounts, rates and duration)? We can possibly give you some suggestions for eradicating it faster.

Wife has a 401k plan at her job. I have an IRA. We also have investment accounts that are self paced, ie I do it.

As has been mentioned, DW should contribute up to any company co-match, then fund a Roth for $3500 if y'all qualify (you have up until 4/15/05 to make your 2004 contribution, then until 4/15/06 to make a $4500 contribution for 2005. Note that even without income, DW can make a spousal contribution for you up to the same amounts (again, assuming elligibility). Then she should fund the rest of her 401k.

Questions: What kind of IRA's can I have? I have a traditional IRA now, but I am limited to the amount I can put into it. How many IRA's can I have? What is the maximum amount of contributions that I can make into all IRA's?

You have to have working income in order to fund an IRA, so your contributions would probably have to be spousal contributions if you are not working from home. DW can only have a Roth IRA (again, assuming elligibility) because she has a 401k. True she could make taxable contributions to a Traditional IRA, but I generally discount that option. Your IRA could be either a TIRA or a RIRA, although unless you need the tax deduction I would recommend a RIRA.

Who wishes you a happy holidays with your wife and your kids all home...
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