roth ira newbie

You got it.

is a great site to see this information layed out clearly. (I have no relationship to the site, I just find it to be the answer to multiple factual questions)JOE

yes husband can open and contribute 4k to 2006 and 4k to 2007 Roth yes husband can contribute 1000 catch up in 2006 and 1000 catch up in

2007 yes husband can open a spousal Roth IRA and contribute 4k to 2006 and 4k to 2007 Roth

"Even if you do not work outside the home, or if you earn much less than your spouse, it's still possible to make the maximum contribution to your own IRA if you and your spouse jointly file your income tax returns. Under the "spousal" rules, you can contribute up to $3,000 (or $3,500 if you are 50 or older) to an individual retirement account this year. The total combined contributions allowed in 2003 for both spouses is $6,000, or $6,500 if one spouse is 50 or older, or $7,000 if both spouses are 50 years or older."

yes husband can contribute 1000 catch up for spouse in 2006 and 1000 catch up for spouse in 2007.

thanks, just to be sure I understood your answer, I wanted to be sure this is correct as you didn't mention anything about the wife

1. husband opens up Roth IRA and deposits 5k for 2006 and also 5k for 2007, total 10k
2. wife open up Roth IRA and deposits 4k for 2006 and also 4k for 2007, total 8k
3. in sum total, the couple will have paid 18.000 to fund two separate Roth IRA's

am asking it that way to make sure there is no separate requirement for separate 4k and then 1k payments but that it can all be paid on the same day or transferred from savings, checking, etc.

thanks, that was easy reading

You could also contribute 2k more for wife (catch up for 2006/2007).

Some MF companies may let you send $20,000 in one check if supporting paperwork tells them how to invest. Two checks should be enough (I tell T Rowe Price how each deposit is handles online, so I assume this is common).

OP doesn't state wife's age. The year she turns 50, she, too, gets the catch up extra 1K.

Here's the thing. You need to have taxable income to contribute to an IRA, so your wife could not have her own. You could contribute to a joint IRA if she is not covered under her own retirement plan, or if she had a previous retirement plan, roll that over into her own IRA. Remember also, that Roth means your contributions are not tax deductible.

Not true. Check the cites from Jim and Joe.

-Will