Message Font: Serif | Sans-Serif
No. of Recommendations: 0
<<This is my first year in the job and I am not eligible for company sponosored pension plan.
Can I start an IRA this year for me and wife (not working) ?>>

Yup. If you (or your wife) are not covered by a qualified pension or profit sharing plan, you can put up to $2,000 away in a regular IRA and take a tax deduction. If either of you ARE covered by a qualified pension or profit sharing plan, then the rules get a little more complicated.

<< when in 1998 I become elgible and start putting money in the company sponsored pension plan,
what will happen to this account.>>

You'll have a number of options... can simply leave the accounts where they are, and not add to them, or can continue to make either deductible or non-deductible contributions to them in future years; or can roll them over into a new Roth IRA.

For additional information on regular IRAs and how they work, check out the IRS web site at:, and read/download IRS Publication 590 regarding the basics of IRAs.

TMF Taxes
Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
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.