Number of IRAs for a family...

[Guest MelsMontanaDraft]

I currently have a 401k and a Roth IRA in my name. My wife is unemployed and, if she does start working again, it will only be for about 3 or 4 years. She currenlty has a 401k (only about $4000), but we are considering rolling it over into an IRA. Are we limited to opening up a Roth IRA in her name or can we open up a traditional IRA in her name?

Thank you

[John G]

If you are married, have earned income of more than $6,000, and otherwise meet the overall income limitations.... then both you and your wife can contribute $3,000 this year to either a Roth or regular IRA (but not both). If you are old enough to qualify for the "make up" provisions, then the max amount is $3,500.

Your earned income enables your wife to qualify.

[Guest MelsMontanaDraft]

The Roth is setup in my name.

Can I contribute on her behalf into my Roth IRA?

Or do I have to add her name to the account (she is currently setup as the beneficiary)?

Or can I setup a Roth in her name?

If I can simply add her to my account, can I roll her 401k into my Roth (with tax implifications)?

[John G]

The key to answering your questions is knowing what the "I" represents in IRA. All IRA accounts are individual accounts. You can not add another persons name to your account. You can not transfer money from someone else's tax shelter into yours. As long as you qualify, you spouse can establish an IRA in her name.