I am no where near as savvy as many of you here when it comes to investing so maybe this is a silly question. Both DW and I have income from w*rk. I have a 401K thru my employer but DW only w*rks PT with no benefits. For tax year 2011 she is allowed to make a tax deductable TIRA contribution $6,000 which would give me about $1,500 additional tax return this year. I am not eligible for a tax deductible TIRA so the last few years I have invested my $6,000 in a ROTH IRA (Vanguard Wellesley).
My question is, How do you evaluate whether or not it is better to invest DW's $6,000 into her TIRA vs. investing in a new Roth IRA and fore go the $1,500 tax savings now for possible tax advantages in the future? Either way the $6,000 would be invested in Vanguard Wellesley.
If it has a bearing, DW is soon to be 58, we would like to retire in about 3 years, and we would not need this money before she reaches SS retirement age 66.2 months, maybe even later than that.
what needs to be considered to make the best educated decision?
Tom
My question is, How do you evaluate whether or not it is better to invest DW's $6,000 into her TIRA vs. investing in a new Roth IRA and fore go the $1,500 tax savings now for possible tax advantages in the future? Either way the $6,000 would be invested in Vanguard Wellesley.
If it has a bearing, DW is soon to be 58, we would like to retire in about 3 years, and we would not need this money before she reaches SS retirement age 66.2 months, maybe even later than that.
what needs to be considered to make the best educated decision?
Tom
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