2014 IRA Contribution Quick Questions

[Eludia]

So, this seems to me it should be clearer, but I'm not fully understanding.  I'd like to make IRA contributions at the limit for my wife and I. $5500 each.  I'd like ideally to put it all in a Roth or half in a traditional IRA, half into Roth.  I can do that right?  What I am reading indicates I can do contributions for both of us, but I want to make sure.

Thanks for the assistance.

[Lkxe]

You and your spouse can each have an IRA based on one income. You can both have as many accounts as you wish as long as the total amount per individual does not exceed $5500. Though one each makes it easier to meet the minimum for any given fund.  Whether roth or traditional depends on your tax situation. We have one of each and 2 lost, leftover from younger traditonals which I really should combine into our Vanguard accounts. Easy Peasy with my TIra but taxes for his to his roth.

caveat - you have to have made $11000 this year

[johnny847]

Also, make sure that your income doesn't exclude you from Roth contributions, if that's what you choose, or exclude you from deductible traditional contributions, if that's what you choose.

For a married couple, so long as your MAGI (where your MAGI is you + your wife) doesn't exceed $181k, you can contribute $5500 each. http://www.irs.gov/Retirement-Plans/Plan-Participant,-Employee/Amount-of-Roth-IRA-Contributions-That-You-Can-Make-for-2014

For married people, if you have a workplace retirement plan, so long as your MAGI (where your MAGI is again you + your wife) doesn't exceed $96k, you can fully deduct traditional IRA contributions. If you do not have a workplace retirement plan, you can deduct the full amount of traditional contributions
http://www.irs.gov/Retirement-Plans/Plan-Participant,-Employee/2014-IRA-Contribution-and-Deduction-Limits-Effect-of-Modified-AGI-on-Deductible-Contributions-If-You-ARE-Covered-by-a-Retirement-Plan-at-Work
http://www.irs.gov/Retirement-Plans/Plan-Participant,-Employee/2014-IRA-Contribution-and-Deduction-Limits-Effect-of-Modified-AGI-on-Deductible-Contributions-if-You-are-NOT-Covered-by-a-Retirement-Plan-at-Work

[Eludia]

Thank you - you both confirmed what I thought.  Our AGI will be under 180K for sure, so we should be able to both contribute the maximum.  I now just need to do some math to see if its better to take the deduction this year or in the future.