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URL:  http://boards.fool.com/gtgtwhile-anyone-under-age-70-12-with-either-26173106.aspx

Subject:  Re: IRA understanding Date:  12/8/2007  10:37 AM
Author:  mrparrotfez Number:  97108 of 121095

>>While anyone under age 70 1/2 with either taxable compensation or a jointly-filing spouse with taxable compensation can make an IRA contribution of some sort, if either spouse is covered by a retirement plan at work, deductibility of traditional IRA contributions is subject to the AGI-based phaseouts explained in Chapter 1 of IRS Publication 590. If only one spouse is covered the phaseout ranges are different for each spouse.<<

I looked this up. It appears that we are in that neck of the woods where we can almost certainly take a partial deduction, but a full deduction is in question, thanks to me having a good year this year with the pen.

>>It could well be that your traditional IRA contribution is deductible but your wife's is not. In that case, she could make nondeductible traditional IRA contributions, but she's probably eligible to contribute to a Roth IRA (Chapter 2 of Pub 590). A Roth contribution is always better than a nondeductible traditional contribution. It's one of the few no brainers in our simplified tax law.<<

I looked this up too. Since we're in the partial realm on Chapter 1, we're well below the boundary on Chapter 2. I've already made my own TIRA contribution for this year, and will make mine for next year on the first business day of 2008, but would like to expand our retirement saving. If we started a Roth for my wife, we probably wouldn't have to wait until year-end to decide how much was eligible. Which would mean that we could get it invested sooner.
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