I live, write, and garden in the PNW with my husband of 27 years, disabled daughter, college-aged son, and my 84-year-old mother. We have paid off $250,000.00 worth of debt (if you include the interest) in the last fifteen years and as of 6/12/2020 are 100% DEBT FREE!!!!If my spouse were to max out his 401K and he grosses around $175K this year with overtime and bonuses, can he take out an IRA as well? Does his income have any bearing on whether or not I can take out a spousal IRA? His company does not contribute anything at all to the 401K so it won't grow as fast as someone whose company contributes on the first 6%, so I think we'll kind of need to make up for that somehow. We plan to do the catch up when DH turns 50, but that's a little over 6 years away.
Retirement Question
August 19th, 2013 at 10:41 pm
August 19th, 2013 at 11:08 pm 1376953689
August 20th, 2013 at 12:03 am 1376957031
What I would do is decide when you do your taxes. I'd try to save up another $10,000 or however much you plan to contribute, in the meantime. But you don't want to contribute now and get a windfall or bonus, and then have to undo it. IT's easiest just to make these decisions at tax time. Your income is close to the cutoff. (For the Traditional IRA, you may only need to save up $3,000, since a $5,000 contribution will probably get you a $2,000 tax refund. Which is another reason just to wait - it gets enticing when you run your taxes with and without).