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Phil - I'd like to follow up with a few more questions on this subject:

1) As to the IRA question - as I understand the law, if either Bill or Mary are already contributing to a 401K through their jobs - the only IRA they can sign up for is a Roth - further it appears that their combined income may put them over the top for a Roth (??)

2)I learned something new here. I've never heard of preference items. I thought AMT kicked in automatically at a certain income level. Can you pls provide examples of what these preference items are?

3) While I appreciate the need for procreation of the species - my husband and I have found that having a child basically only provides an additional exemption (not that there's anything wrong that....:) ) Because our combined household income is on par with that of Bill and Mary - we find that our childcare credit is somewhat limited - further I may be mistaken- but I think we may also be precluded from opening an educational IRA for our child. Please point me to the real tax savings you are referring to.

Thanks Phil for your ever present assistance with these pressing matters.
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