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Author: billygirlardo Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75539  
Subject: roth & traditional? Date: 1/8/2002 2:30 PM
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can I have both?
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Author: rkmacdonald Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 33172 of 75539
Subject: Re: roth & traditional? Date: 1/8/2002 3:29 PM
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Author: billygirlardo Date: 1/8/02 2:30 PM Number: 33170
can I have both?

Yes, you can have as many of every kind of IRA that you want, BUT the combined contributions to all of them cannot exceed the max allowed that year; ie, this year (2002) the total cannot exceed $3000.

RK


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Author: Dripfoolio Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 33232 of 75539
Subject: Re: roth & traditional? Date: 1/10/2002 2:52 PM
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Yes, you can have as many of every kind of IRA that you want, BUT the combined contributions to all of them cannot exceed the max allowed that year; ie, this year (2002) the total cannot exceed $3000.

RK


Does this max (3,000) go for married couples as well or is the max an indvidual contributors max?



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Author: PMcMullenCT Three stars, 500 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 33236 of 75539
Subject: Re: roth & traditional? Date: 1/10/2002 3:35 PM
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Yes, you can have as many of every kind of IRA that you want, BUT the combined contributions to all of them cannot exceed the max allowed that year; ie, this year (2002) the total cannot exceed $3000.

Does this max (3,000) go for married couples as well or is the max an indvidual contributors max?

IRA accounts are Individual, as is the $3,000 annual contribution limit.



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Author: rkmacdonald Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 33265 of 75539
Subject: Re: roth & traditional? Date: 1/11/2002 11:31 PM
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Author: Dripfoolio Date: 1/10/02 2:52 PM Number: 33232
Does this max (3,000) go for married couples as well or is the max an indvidual contributors max?

Just to be clear: The 'I' in IRA stands for 'Individual'. There is no such thing as a joint IRA between you and you spouse.

You and your spouse can each have your own IRAs and you can each contribute a maximum of $3000 in 2002, even if only one of you has earned income (as long as there is at least as much earned income as the total amount of the contributions to the IRAs)!! If there is a non-earning spouse, that IRA is then called a Spousal IRA.

RK



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Author: GreatWhite One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 33266 of 75539
Subject: Re: roth & traditional? Date: 1/12/2002 7:27 PM
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Hi. If I may, I have a few questions. First, if the wife earns say $1000 for the year, can she contribute her $1000 and myself (the higher earner) kick in the other $2000 for her? For a spousal traditional nondeductable IRA, are there any income restrictions/ cut offs
( i.e. AGI being over $160K or whatever)? Does participation in a 401k exclude a spousal IRA?

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Author: rkmacdonald Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 33267 of 75539
Subject: Re: roth & traditional? Date: 1/12/2002 9:44 PM
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Author: GreatWhite Date: 1/12/02 7:27 PM Number: 33266
...if the wife earns say $1000 for the year, can she contribute her $1000 and myself (the higher earner) kick in the other $2000 for her?

Yes.

It doesn't matter how much she or you make individually as long as you have enough combined earned income.

For a spousal traditional nondeductable IRA, are there any income restrictions/ cut offs ( i.e. AGI being over $160K or whatever)?

No. There is no upper income limit on being eligible to contribute to the Spousal Traditional IRA (or yours).

Does participation in a 401k exclude a spousal IRA?

No.

You having a 401(k) doesn't affect her eligibility to contribute to her Spousal Traditional IRA. It also doesn't affect your eligibility to contribute to your own Traditional IRA.

However, if you have a qualified retirement plan like a 401(k), and your earnings are above a certain fairly low threshold, you cannot deduct your contributions to your Traditional IRA.

I highly recommend that you read the IRA and 401(k) information in the Retirement section here on the Fool website at:

http://www.fool.com/retirement.htm?ref=G02A04

RK

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