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Hello, and welcome. Thanks for your question and thanks for requesting me directly
How are you doing today?
The answer to your question is yes, you can contribute to Roth and traditional IRAs, although your deduction for the traditional IRA could be limited since you are covered by a retirement plan at work.
If we both have 17.5 in our 401k, can we contribure 5.5 to a roth IRA? How do i find the limits/conditions?
Yes, you could contribute 5,500 to a Roth IRA ... with the Roth there are no deductions available, you are funding with after tax money
but if you wait until retirement to draw, 100% of the withdrawal is tax free
what about a traditional IRA - are we able to contribute to that? and if so, would that be before tax?
Yes, you would be able to contribute to that, but your deduction may be limited, as such you would have after tax money in there too. Which, when you take the after tax money back out it is not taxed again. But, your earnings would be taxed.
It depends on your income. CLICK HERE for the limitations.
got it. this is very helpful. thank you.
i believe i know my path...
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will do. thx.
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