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Thank you all very much for the quick messages. Now my wife and I know that whatever amount we contribute together in our separate 401k's will reduce our taxable income regardless of if we own and add to our IRA's. This is great news.

Also, I am assuming that before we do anything with relation to "asset location" to reduce taxes we need to first max out the 401k's first as well as our IRA's?

To be specific, I wanted to open a brokerage account for my wife to add an S&P 500 Index Fund since I read it's more beneficial to hold it in a brokerage account. She currently owns this fund in her Traditional IRA. I suppose holding it in her IRA won't be detrimental to tax implications? And should I wait to open a brokerage account for her because she doesn't max out her 401k yet?

Thank you all for your knowledge!
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