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Subject:  Re: IRA understanding Date:  12/8/2007  12:55 PM
Author:  TMFPMarti Number:  97115 of 127544

Our 2006 AGI was $72K. Next year I expect it to be higher, perhaps $76K-78K. I make my max $4000 TIRA contribution each year. The box on my wife's W-2 about a retirement plan was checked last year and should be this year, as she contributed $10000 to a 401K.

You: Your traditional IRA contribution is fully deductible. Another response mentioned a SEP. If you are eligible to contribute to a SEP and do so, that means you are also "covered" by a retirement plan, and your phaseout range would be the same as your wife's.

Your wife: She's in the phaseout range for deductibility of traditional contributions. One approach would be to contribute to her traditional IRA up to the point that it's no longer deductible, with the balance of her maximum IRA contribution going to a Roth. You're easily within the AGI limits for Roth contributions.

Since the deadline for 2007 IRA contributions doesn't come until 4/15/2008, you have plenty of time to get your exact figures and work from there.

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