I'm self-employed via an S Corporation. My wife currently isn't working and staying home with our 3 kids.
I recently started an Ind. 401k and will be maxing that out at $17,500.
Can I then also max out a Traditional IRA for myself as well as my spouse. I thought I read somewhere that hers wouldn't be tax deductible if I'm contributing to a 401k but I could be wrong.
So theoretically it could be:
$17,500 401k
$5,500 my IRA
$5,500 my wife's IRA
$28,500 saved tax deductibly. :)
Anyone know? Or does this not work?