2007-01-20 01:43:36 · 5 answers · asked by j clune 1 in Business & Finance ➔ Personal Finance
Your spouse may contribute to an IRA after she quits her job. The question is will the contribution be deductible. That depends on your joint modified adjusted income. A good resource can be found at http://www.investopedia.com/articles/retirement/03/011603.asp
The following year assuming you work (IRA contributions are only allowed based on earned income, ie; W2 wages) your wife could continue contributing under the spousal IRA rules.
2007-01-20 04:33:58 · answer #1 · answered by Joe T 1 · 1⤊ 0⤋
IRA or 401(k)?
You can contribute to an IRA anytime you wish, up to a certain amount per year. An IRA is an Individual Retirement Account. It works the same way as a 401(k), just without the company match.
A 401(k), you would need to roll it over to an IRA. A 401(k) is a pretaxed retirement savings account and the company will add a percentage to it.
2007-01-20 03:18:28 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Yes, she can put money into the IRA. What you might be thinking of is a 401(k) which is a retirement plan through your job. With a 401(k), after you quit/leave that job, the employer will probably look at how long you've been with the company and they might determine how much you have vested into the plan (years of service = how much of the employer contribution you can keep) and then it's your choice whether you want to take out the 401(k) earnings or - and this is the much wiser option - have them DIRECTLY ROLLED OVER into your personal IRA. (This prevents taxes from kicking in)
Hope that helps!
2007-01-20 02:06:03 · answer #3 · answered by bebedejuin 2 · 1⤊ 0⤋
WHY not it is her IRA, she does not have to have a job to put money into an IRA.
2007-01-20 01:51:40 · answer #4 · answered by redhotboxsoxfan 6 · 0⤊ 0⤋
Yes.
2007-01-20 01:47:18 · answer #5 · answered by Muga Wa Kabbz 5 · 0⤊ 0⤋