Are Roth contributions allowed with another retirement plan?

[Guest JHardy]

I am married. I have one job and contribute about $7500 per year to a 401K.

My wife works two jobs. She gives $3600 per year to a 403b with her full time job. She has a part time nursing job at a VA hospital and does not contribute to a retirement plan. Our AGI is around $75000. Can my wife or I contribute to a Roth and will the contributions be deductible?

Thanks for any help.

[Michael Devault]

The only limiting factor on Roth IRA contributions is your modified adjusted gross income. Unlike Traditional IRAs, participation in an employer's retirement plan is not a deciding factor in whether or not you can make a Roth IRA contribution.

Contributions to Roth IRAs are not deductible in any circumstance. They are made with after-tax dollars, but qualified withdrawals can be made on a tax free basis.

For more information, look at IRS Publication 590. Good luck.