Husband and Wife- combine Roth IRA's?

[Guest nichoju80]

My wife and I were just married and both had Roth's set up before we were married.

Few Questions:

1. Can the accounts be combined in any way?
   
2. She is not currently, but when we start a family, she will be a SAHM (stay at home mom). Can we contribute to her acct even though she will NOT have taxable income? (i.e., with my salary)
   
3. what are the contribution limits for tax year 2008 for married filing jointly, and is it a COMBINED limit, or a limit for EACH account?
   

THanks very much

[J Simmons]

#1-the accounts cannot be combined

#2-she can despite SAHM if you file 'married filing jointly' and that is less than $159,000 (phases completely out at $169,000)

#3-$5,000 limit each

[masteff]

And you might find IRS Publication 590 to be helpful. http://www.irs.gov/pub/irs-pdf/p590.pdf

[John G]

Limits are higher if you are over age 50 - the "make up" provisions. Sounds like you might be more in the "make out" age catagory. Note, you can't contribute the lesser of $5+$5 K or your combined earned income. All of these numbers can change by act of Congress or as you enter a new year. You can keep abreast of these issues by reading Pub 590 (which is almost definitive, but definitely on the dry side) or subscribing to a monthly financial periodical like Kiplinger Financial - about $16 a year and very well target to young couple issues like credit, investing, employer retirement options, housing, etc.

The "I" in IRA stands for individual. It is good for you and your wife to set up accounts. Search on the key word "custodian" on this message board and you will get some hints on how to begin. This is a big opportunity for both of you to begin your investing education. Your wife needs to be part of that process, even if it is looking at statements and making some mutual fund decisions.

SAHM - is that some kind of Yiddish expression. Just joking.... It is hard in our society to do the stay at home route. In my wife's case, she created a sub S business in 1982 and made a pitch for better service, more design choices and a lower annual cost to a client of the graphics/publishing house she worked for. They got over it. During the first five years with two children, she was making about a year salary on about 16 hours a week. She discovered that she valuable more as a problem solver for small associations (writer, event organizer, research, editor, photo finder, and printer cost/contract negotiator). Our two girls learned a lot early on about typography... and are now both in grad school moving up the career chain and soon facing the same issue. My wife eventually went back and got her Phd a year ago, so we are now doing the professor shtick.

If you need some help in thinking about how to invest your funds - do a search on any of these key words or phrases: index, no-load, mutual, beginner.

Post again if you have questions. Watch out for salespersons and abnormally high fees/expenses.