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Question for the Money Doctors

Question submitted on Apr 16, 2013.

Question

My wife and I are doing our debt snowball and intend to be debt free by the end of this year. I have a a Roth IRA opened last year and a 401K through my job and my wife starts work this summer. Then, we will be making a combined income of $184,000 so would not qualify for a Roth anymore. Can we open a traditional IRA and if so, are there any limitations on how many we can open?

Answer

Congratulations on becoming debt free! If you do not qualify for a Roth IRA contribution, you can still make a non-deductible contribution to a traditional IRA. The maximum amount you can contribute is per person and per year. It is not per account. For example, assume you and your wife each contribute $5,500 for 2013. You can split your own $5,500 contribution among your own IRAs,if you wish to have several.The same goes for your spouse.


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