Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (9) | Ignore Thread Prev | Next
Author: FuskieFool Big funky green star, 20000 posts Top Favorite Fools Old School Fool Ticker Guide Space Camp 1 Red
Squad Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 25033  
Subject: Re: 401K + tax time HELP PLEASE! Date: 1/30/2003 2:08 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
Just to clarify, you mean that the amount an individual can put in a 401K doesn't change with marital status. I read it as a married couple (two people) can add the same amount as a single person, which I belive, is not what you were trying to say.

By it'd nature, a 401K is an individual account. Contributions come from a single employee's pay check. This means that you can put up to $12k in your account, and your wife $12k in hers, providing your AGIs does not limit your contribition amounts.

While you both have 401Ks, you can not also deduct contributions to a traditional IRA (which again is individual, not combined). Since your wife would be taxed if rolling her Trad IRA into a Roth IRA, I recommend leaving the IRA as is unless there are costs or poor investment options that might drive you to change.

If you have maxed contributions to your respective 401Ks (or at least the minimum to earn any matching contributions), then consider a Roth IRA. Just remember that Roths are after-tax contributions. All your tax-free contributions will come from your 401Ks.
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (9) | Ignore Thread Prev | Next

Announcements

Invest Better Hub
Take advantage of our newest free service, Invest Better!
New Fool-Branded Credit Card Available!
How does your card compare to ours?
Post of the Day:
Berkshire Hathaway

Coolidge Lessons for Today
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Facebook Fool Fan Club
Be a fan of the Fool over on Facebook!
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Get the Fool Phone App
Save and share content, zero in on sectors, podcasts, and much more!
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! 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.
Advertisement