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Greetings, KEDozier, and welcome. You asked:

<<I have a 401k which allows me to invest in all types of instruments. My wife has not worked for many years and does not have an investment portfolio. What type of instruments are available to her for establishing a personal nestegg on a tax defered basis? Are there any restrictions because of my networth or spousal status because California is a community property state?>>

I can't speak to California, but for federal purposes your spouse is fully eligible for a deductible traditional IRA provided your adjusted gross income is $150K or less. She may make a partially deductible contribution until your joint AGI reaches $160K. Above $160K, then she may contribute only to a nondeductible traditional IRA where at least the earnings may accumulate tax-deferred. The only other option is an annuity, and around Fooldom we don't like those vehicles too much. For details on IRAs, see our IRA area at For details on Annuities, see our Annuity area at

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