If I max out my 401K at Work can my wife who does not have a 401K at work open a traditional IRA that we can deduct on our taxes ?
2007-02-10 03:44:44 · 3 answers · asked by bstnrs 1 in Business & Finance ➔ Taxes ➔ United States
Yes, she can.
Your ability to contribute to an IRA depends on:
1. Are you an active participant of a retirement plan?
2. Filing status/AGI
You would need to calculate your AGI to see whether or not you are still able to contribute to an IRA (not just a regular IRA but also a ROTH IRA) since you're an active participant in your company's retirement plan.
Since your spouse does have have a retirement plan at work, she can contribute up to the max allowed and there is no income limit for those who are not active participants of another retirement plan.
One other question you should consider...
Do you want the tax savings now or later?
If now... then consider a traditional IRA.
If later... then consider a ROTH IRA.
You should consult with a local financial advisor to assist you!
2007-02-10 04:15:03 · answer #1 · answered by MrMojo1 5 · 0⤊ 0⤋
Yes, if she is in employment that does not have a 401k. However, the rules are pretty strict, especially in terms of income limits.
2007-02-10 11:50:34 · answer #2 · answered by skip 6 · 0⤊ 0⤋
She can bet she cannot contribute the as much as you can contribute to your account. The thresholds are differnt.
2007-02-10 12:08:48 · answer #3 · answered by The Answer Man 2 · 0⤊ 0⤋