Should I contribute to my IRA

[dm]

My wife worked as a adjunct professor last year. She even did it online. I'm thinking it makes sense to max out both our IRA's even if it means taking some long term capital gains now to fund them.

I guess if tax rates rise it would be better to pay the tax now. I can see us needing to start withdrawing funds in a few years.

 

[travelover]

It makes sense to contribute now if you can withdraw the IRA money in a lower tax bracket.

 

[dm]

I just realized that I really can't put that much into a IRA, I was thinking 401k type deposits.

So now the question is should I just put it into a Roth, or reqular IRA?

 

[dm]

It makes sense to contribute now if you can withdraw the IRA money in a lower tax bracket.

I don't see our tax bracket being lower.

 

[DrRoy]

I like funding a Roth as the gains will not be taxed.

 

[COcheesehead]

IRA first if it's deductible. If not than Roth first. You can also contribute $5000 or $6500 depending on your age to the IRA even if it's not deductible.

 

[travelover]

I don't see our tax bracket being lower.

Then go with a Roth.

 

[Sunset]

Pick Roth, and if she made 13K or more, then you can each do $6,500 contribution (it does not matter who earns the $$ ).

 

[dm]

She made a little over $13000. I went ahead and opened a Roth account for her with $6500. I may just add the other $6500 to my regular IRA. Then do the same for this year. Then I'll be at least half right.