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As I understand, she cannot make tax-free contributions to a trad IRA since her employeer now offers a 401k.

That depends on your income, actually. The cap, however, is pretty low.

Now my question is, what can we do?? The trad IRA is with Srong and they require her to make at least $100 contributions per month since she's doesn't have enough in the account to reach there minimum balance requirements.

Find another IRA plan with more favorable terms, and roll the IRA over.

At this point, you are probably stuck with keeping the IRA as an IRA, but you can change IRA plans and companies. The hitch is that you may have to pay some sort of transaction fee and/or back-end load to Strong to get it out of their hands. Alas. Consider it your tuition fee for the school of hard'll know to ask more questions next time.

The alternative is to make non-deductible IRA contributions to the IRA until it meets the minimum balance requirement.

I would like to start a Roth IRA at some point, but I'm not sure if rolling the trad IRA to a Roth is worth the taxes and penalties that we'll have to pay to do so.

There is no penalty, but the rollover would be taxed as income.

trong requires my wife to make contributions until she reaches her account minimum.

What happens if she doesn't? I mean, they aren't going to walk into your home and take $100 off the dresser, are they? [I assume there is some sort of penalty....]

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