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Subject:  Re: Retirement Contributions Date:  1/20/2005  6:49 PM
Author:  RV2000 Number:  44119 of 88775

1. I'm married, so does that mean that I can contribute $4000 to a Roth and my wife can contribute $4000, so we get a total of $8000 per year of contributions?

Yes, but you each must have your own Roth IRA account. So you could contribute $4000 into a Roth IRA that is held in your name, and then an additional $4000 into a Roth IRA that is held in your wife's name. You could NOT contribute $8000 into just your IRA.

Unless you are 50 or over....then you would be eligible for an additional $500 catch-up contribution each. Also, if your combined AGI exceeds $150k you will enter a phase-out range reducing the amount you can contribute.

2. I'm thinking about taking a job at a startup company that has a 401k program with no company match. In this case are you better off maxing out your Roth contributions, and then putting the rest into the company 401k?

That is the general rule if your comapny doesn't match on a 401(k), yes. Whether after maxing out your IRA you want to contribute to your 401(k) or to a taxable account, that is your choice. I personally would choose to put the rest into my 401(k).

This is also an area the $150k phase-out may come into play. If you need to reduce your AGI in order to stay below $150k, the 401k contribution could help you do so.

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