No. of Recommendations: 0
Kjs1 asks:

1) Can she contribute to a traditional IRA or is she ineligible because of my plans?

She may contribute to a fully deductible traditional IRA until your joint AGI exceeds $150K. Even then, she may continue to contribute to a nondeductible traditional IRA.

2) Being that there are no "early withdrawal" penalties in a 457, is she better off increasing contributions to the 457 or contributing $2000/yr to Roth IRA?

She may not wish to use the 457 at all, given the poor investment choice available. She should consider putting $2K in the Roth first, then use either the 457 or a taxable account to take advantage of the lower capital gains tax rates in the latter. See Step 4 of the 13 Steps to Foolish Retirement Planning, and then run a similar analysis using the 457 plan against the taxable account. You can find Step 4 at .

Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.