A Few Options for You & Your Non-Working Spouse When Making Retirement Contributions
Has tax season put money on your mind? Well, you are definitely not alone. Many couples begin to think about ways they can reduce the taxes they have to pay when good old Uncle Sam strolls into town. Often, people that are maxing out their 401(k) plan want to know what else they can do. Can they contribute to another account and perhaps receive a deduction?
It’s certainly possible!
Now, the maximum you can contribute to a 401(k) in 2017 is $18,000 — if you are under 50. If you are over 50, you can contribute $24,000. So what happens if you want to contribute more money than those plans allow?
What options do you have? Can you contribute to a Traditional IRA? And if so, can you also take a full deduction? Can you make a contribution to an IRA for your spouse? Can you contribute to a Roth IRA? Are you allowed to contribute to Roth IRA if you are already contributing to a 401(k) plan?
For now, tune into the podcast, where I answer these questions in more detail along with some more great questions in this month’s question and answer show.