I am not sure why ask questions like this on this board but I am sure there are some CPAs/Tax Gurus on here that might be able to answer this.
I have until tomorrow to make a contribution:
1. Since I have access to a 401k through my work it is my understanding that I can't contribute to an IRA; is this a true statement?
2. Since my wife does not have access to a 401k she can contribute to an IRA. I understand the difference between a Roth and a Traditional IRA. Roth IRA you do not pay taxes on when you take it out so therefore you do not pay taxes on any interest or growth of the money but you pay taxes when you deposit the money. Traditional you don't pay taxes on the money that you deposit therefore I could deduct the amount I deposit into the IRA from this years taxes. Wife is over 59.5 therefore she has access to any IRA Funds now. Which makes more sense? I am plan on making a lump sum contribution to 1 or the other today/tomorrow but not sure which way to go.
Any help would be appreciated.
I have until tomorrow to make a contribution:
1. Since I have access to a 401k through my work it is my understanding that I can't contribute to an IRA; is this a true statement?
2. Since my wife does not have access to a 401k she can contribute to an IRA. I understand the difference between a Roth and a Traditional IRA. Roth IRA you do not pay taxes on when you take it out so therefore you do not pay taxes on any interest or growth of the money but you pay taxes when you deposit the money. Traditional you don't pay taxes on the money that you deposit therefore I could deduct the amount I deposit into the IRA from this years taxes. Wife is over 59.5 therefore she has access to any IRA Funds now. Which makes more sense? I am plan on making a lump sum contribution to 1 or the other today/tomorrow but not sure which way to go.
Any help would be appreciated.
