I WOULD LIKE TO INVEST IN A ROTH IRA. I AM PRESENTLY INVESTING 20% OF MY INCOME IN A REGULAR IRA THROUGH COMPANY PAYROLL DEDUCTIONS. WILL THIS CONFLICT BY HAVING TWO IRAS? ALSO MY SPOUSE WHO IS 65 AND RETIRED WOULD LIKE TO INVEST IN A ROTH IRA WITH ME. IS THIS POSSIBLE?
THANKS, FRANK

Frank, It sounds from your post like you might have something other than a traditional IRA. Usually payroll deduction signals some sort of employer sponsored plan that allows employer deferrals, ie. 401k, SIMPLE IRA.
Matt Tuttle
203-609-9077
http://www.wealthadvisors.bigstep.com

It is possible to have a payroll deduction of 20% to a tradtional IRA--just make sure you don't contribute over $2,000 to the IRA. You may want to check to make sure the employer isn't providing a SIMPLE IRA. This is not the same as traditional IRA but it does make you an active participant for IRA purposes.

Your question is can I do something with my wife? Yes open a spousal Roth or traditional IRA in her name not yours. Must file a joint return and have compensation more than 4,000 and less than $150,000. The fact that your wife does not work doesn't matter. This a quick summary of the spousal IRA rules.

Responding to "with me": IRA's are individual accounts. So if you have enough earned income to qualify your wife, she can have her own ROTH or regular IRA. Her investment would be separate from yours, not co-mingled funds or jointly held. If she has her own earned income such as from part-time work, she can qualify by herself.

If "with me" just means sharing research and discussing your investments, that is a good idea. One of the sad problems with many couples is that sometimes just one spouse makes all the decisions. I am a great believer in two heads are better than one.