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No. of Recommendations: 2
1) Does contributing to a Roth 401(k) in any way subtract from the $5,000 per year contribution she is allowed to make to the Roth IRA or are they unrelated?

They are related, but probably not as directly as you would like.

The ability to contribute to a Roth IRA is limited by your MAGI. Your MAGI is reduced for contributions to a Traditional 401(k), but not reduced for contributions to a Roth 401(k), since Traditional contributions are pre-tax, while Roth contributions are taxable. So, if your joint MAGI puts you close to the limit where you can make a full Roth IRA contribution, by contributing to a Roth 401(k) instead of a Traditional 401(k), your wife may limit the ability for both of you to contribute to Roth IRAs. IRS Pub 590 has the rules and income limits.

2) Anyone have opinions (good or bad) on contributing to both a Roth 401(k) and Roth IRA instead of the traditional methods?

It's really dependent on what you think the tax rules and associated rates will be when you retire. Since my crystal ball is a bit cloudy on that, I think that having different tax treatments for different accounts in retirement will be a good thing - that way I will have some ability to structure my income in order to minimize taxes paid.

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