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Hi fellow fools - any help would be much appreciated. Here's my story - My wife works for a Canadian company (she works in the US). She makes around $40,000 per year and until now has not had any kind of retirement plan from her company. What the owner has offered is that they will match any contribution to a retirement plan up to 5% of her annual salary but the company does not want to do any kind of work as far as recordkeeping/tax reporting/set-up for her retirement plan. The company will pay the match to her as regular salary (with some extra so that she will clear the 5% after taxes)only after she shows proof that she has deposited her 5% to a retirement plan. She must then show proof that she deposited the matching portion towards a retirement plan. We have already been depositing the $2,000 annual amount to a Roth IRA for her so there's no problem with her providing proof of deposit for her portion. The company's matching portion (5% of $40,000 = $2000)which we need to show proof of deposit to a retirement plan is what we're not sure what to do with. I'm not sure what the rules are for a non-deductible IRA - Is it allowable to contribute to a traditional non-deductible IRA if you have made a $2,000 contribution to a Roth in the same year? If this is not an option I'm open for any suggestions/alternatives. If congress would just bump the Roth deposit limit to $5,000 from $2,000 it sure would make our life easier. Thank you in advance for your foolish input.
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