getting conflicting viewpoints on whether we can have 2 roth ira's for our 1 income family (have 401k and make less than 100k). need clear answer and possibly a source to print for backup for tax files. thanks a bunch.
LL - nashville

So long as (a) you're filing Married, Filing Jointly, and your AGI is less than $150,000 (phase out of eligibility occurs between 150 and 160K), and you earned at least $4,000, you can establish a Roth for EACH of you, irrespective of whether either participates in another retirement plan.

Here are some cites to authority:

"CAN I CONTRIBUTE TO A ROTH IRA FOR MY SPOUSE? You can contribute to a Roth
IRA for your spouse provided the contributions satisfy the spousal IRA
limit discussed in chapter 1 under HOW MUCH CAN BE CONTRIBUTED? and your
modified AGI is less than the amount shown for your filing status in TABLE
2.1." - IRS Publication 590.

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The following is from the Internal Revenue Code, Sect. 219©:


© SPECIAL RULES FOR CERTAIN MARRIED INDIVIDUALS

(1) IN GENERAL

In the case of an individual to whom this paragraph applies for the
taxable year, the limitation of paragraph (1) of subsection (B) shall
be equal to the lesser of--

(A) the dollar amount in effect under subsection (B)(1)(A) for
the taxable year, or

(B) the sum of--

(i) the compensation includible in such individual's gross
income for the taxable year, plus

(ii) the compensation includible in the gross income of such
individual's spouse for the taxable year reduced by--

(I) the amount allowed as a deduction under subsection
(a) to such spouse for such taxable year, and

(II) the amount of any contribution on behalf of such
spouse to a Roth IRA under section 408A for such
taxable year.

(2) INDIVIDUALS TO WHOM PARAGRAPH (1) APPLIES

Paragraph (1) shall apply to any individual if--

(A) such individual files a joint return for the taxable year,
and

(B) the amount of compensation (if any) includible in such
individual's gross income for the taxable year is less than the
compensation includible in the gross income of such individual's
spouse for the taxable year.

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I hope that's helpful.



------------------
John L. Olsen, CLU, ChFC
Olsen Financial Group
St. Louis, MO
314-909-8818

Above info is on target.

One of the reasons you may have gotten conflicting info is that IRA rules change. Spousal rights for full 2K were expanded. Do not rely on any IRA explainations that are out of date. Roths for example were created in 1998 and the regulations have already gone through one major technical corrections cycle.