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Posted by Rich Carreiro on June 4, 2006, 12:54 am
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> Got married in 2005. My wife and I are each sole
> proprietors. We each contribute to separate SEP IRAs. We
> filed jointly in 2005. I did our taxes with TurboTax, which
> calculated that I could contribute 4,500 to a Roth IRA and
> my wife could contribute 4,500 to a Traditional IRA.
That doesn't make any sense. Since you are in identical
situations (both are sole props., both are covered by a
qualified plan (your SEP-IRAs)), it makes no sense that TT
said one of you could contribute to a Trad IRA and the other
to a Roth. The income limit for being able to contribute to
a Roth is based on *joint* income and applies to *both* of
you. So either both of you can contribute to a Roth or
neither of you can.
Am I correct in assuming you're both over age 50? Because
if not, your max contribs were $4000, not $4500.
--
Rich Carreiro rlcarr@animato.arlington.ma.us
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