Message Font: Serif | Sans-Serif
No. of Recommendations: 1
I'd recommend fully funding Roth IRAs for both of you. While it won't save you any taxes now, you are able to pay the tax and all future withdrawals will be tax-free. Also, I don't know how small your side business is, but you can potentially put 100% of your profit, up to about $10,000 into a tax deferred SIMPLE IRA, in addition to your 401K and Roth or traditional IRAs. Boilerplate forms are available and you can put the money in a discount brokerage account if you choose, minimizing costs.

Foolish regards,

Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.