IRA for stay at home mom?

[ditheca]

We are maxing out my 401k for the first time this year!

Next year I'll max it out and still have more to invest, and I need options for stashing the rest of our money.  Can I contribute $5500 to an IRA even though I'm already maxing a 401k through my employer?  Can I also contribute $5500 to an IRA in my wife's name, even though she officially has no income?  (Married filing jointly).

I did talk to a CPA (my mother) who said this should work, but it isn't her area of expertise so I'm looking for a quick sanity check.

[Axecleaver]

Yes, it's fully deductible as long as you're under the phaseout limit, which is 98k AGI for MFJ, phases out between 98 and 118k, and disappears at 118k:

http://www.irs.gov/Retirement-Plans/2015-IRA-Deduction-Limits-Effect-of-Modified-AGI-on-Deduction-if-You-Are-Covered-by-a-Retirement-Plan-at-Work

[dandarc]

And the deductibility limit for your wife is $183K, since she is not covered by a plan at work:

http://www.irs.gov/Retirement-Plans/2015-IRA-Deduction-Limits-Effect-of-Modified-AGI-on-Deduction-if-You-Are-NOT-Covered-by-a-Retirement-Plan-at-Work

[NoraLenderbee]

Yes, it's called a spousal IRA and it's for (guess what) spouses who don't earn an income.

[MoonShadow]

Can I contribute $5500 to an IRA even though I'm already maxing a 401k through my employer?

Yes.

  Can I also contribute $5500 to an IRA in my wife's name, even though she officially has no income?  (Married filing jointly).

Yes, this is specifically allowed in the tax code.

[ditheca]

Awesome!  Thanks for the quick responses.

I doubt we'll be thifty enough to save more than $29k/year unless DW finishes her degree and decides to look for work.

Is Vanguard the best place to set up our IRA accounts?  I'd be comfortable leaving them entirely invested in something like VTSAX.