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Author: NewFool1999 Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75383  
Subject: IRA Questions Date: 8/1/1999 7:47 PM
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Hi,

I am a married person and my spouse does not work. We file a joint return. My AGI is below 150,000.
I am considering opening a ROTH IRA account under my name. Here are some things I need clarified.
1. I understand that I can contribute a maximum annual amount of $2000. Given my situation can I make this account joint under mine and my spouse's name and hence contribute $4000 anually ?
2. If not should I be opening another IRA ( Spousal IRA) account in my spouse's name and contribute $2000 in addition to the $2000 contribution to my ROTH IRA account?
Also will this spousal IRA account be traditional IRA account or Roth IRA account ?
If it is a traditional IRA account, then is the contribution tax deductable given my situation ?

Any help in this regard will be appreciated.

Thanks

SNP.
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Author: JAFO31 Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 12690 of 75383
Subject: Re: IRA Questions Date: 8/2/1999 12:12 AM
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NewFool1999/SNP: You wrote: "I am a married person and my spouse does not work. We file a joint return. My AGI is below 150,000.
I am considering opening a ROTH IRA account under my name. Here are some things I need clarified.
1. I understand that I can contribute a maximum annual amount of $2000. Given my situation can I make this account joint under mine and my spouse's name and hence contribute $4000 anually ?


No. IRA stands for Individual Retirement Account; there is no JRA.

"2. If not should I be opening another IRA ( Spousal IRA) account in my spouse's name and contribute $2000 in addition to the $2000 contribution to my ROTH IRA account?"

If you can afford it, this would be a wonderful idea.

3."Also will this spousal IRA account be traditional IRA account or Roth IRA account?"

Your choice; analysis between regular and Roth has been discussed frequently.

4."If it is a traditional IRA account, then is the contribution tax deductable given my situation?"

I believe yes, but I am no expert. I am sure the other regular posters will chime in if I am incorrect.

Hope this helps. Regards, JAFO



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Author: JDOyster Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 12727 of 75383
Subject: Re: IRA Questions Date: 8/2/1999 5:26 PM
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3."Also will this spousal IRA account be traditional IRA account or Roth IRA account?"


A "spousal" IRA only means that you opened an account for a spouse who had little-or-no earned income. It can be a traditional IRA or a Roth.

Under normal circumstances, your IRA contribution may only come from your earned income (e.g. wages, tips, etc), and nobody else may make an IRA contribution on your behalf. The only exception is that your spouse, if s/he has earned income, may contribute on behalf. A "Spousal IRA contribution" indicates that you are taking advantage of this exception, but it can be either type of IRA.

4."If it is a traditional IRA account, then is the contribution tax deductable given my
situation?"

I believe yes, but I am no expert. I am sure the other regular posters will chime in if I am incorrect.


It depends on whether you are a participant in a 401(k) or similar plan through work. If you, or your employer, contribute to a qualified retirement plan on your behalf for 1999, you can only deduct an IRA contribution if your AGI is below $41,000 (the deductible amount phases out between $31K and $41K).

If you're not in a 401(k) (or similar) plan, that limit doesn't apply.

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