Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (18) | Ignore Thread Prev | Next
Author: FoolRedo One star, 50 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121482  
Subject: Re: Technical IRA Question Date: 2/18/2011 7:13 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
Many thanks to you, vkg, and TMFPMarti, for confirming what I thought I knew. I'm glad it will be no more complicated than this to pick up the pieces and move forward.

Regarding the traditional account for the wife and Roth fort me, please allow me to solicit your input on that. My logic is as follows:

1. I'm not convinced my marginal tax rate will be much different in retirement than it it's now; if anything, it might be a little higher the way the works and US economies are heading. Based on this, the long term tax advantages if one over the other are fuzzy at best, not clear cut to me.

2. I am employed and covered by my employer's defined contribution plan. The wife is a full-time mom.

3. If I'm reading the takes correctly, based on my MAGI (greater than 106k and less than 167k), our filing status as MFJ, and the conditions in #2 above, the full contribution to her traditional will be deductible now, and since mine wouldn't be deductible at all, the Roth is the better choice for me.

I'm not 100% convinced this it's the best course of action. Sometimes I think we should both simply have Roth's, especially if marginal rates atl be higher in the future.

Your well-informed thoughts?

--
FoolRedo
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (18) | Ignore Thread Prev | Next

Announcements

Disclaimer:
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.
Pencils of Promise - Back to School Drive
"Pencils of Promise works with communities across the globe to build schools and create programs that provide education opportunities for children."
Post of the Day:
Value Hounds

Considerable Headwinds for Profire Energy?
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
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.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
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