Permalink Submitted by Alan - IRA critic on Tue, 2014-04-15 19:05
If he cannot deduct a traditional IRA contribution, and your joint modified AGI is not too high to contribute to a Roth, then a Roth contribution is always better than a non deductible TIRA contribution, and also better than not contributing at all. If he could deduct a TIRA contribution and also could make a Roth contribution, then the choice should be made on whether your current marginal tax rate is lower or higher than you expect it to be in retirement. If higher, make the deductible contribution to a TIRA, if lower then make the Roth contribution. If you have no idea about future tax rates and also never made a Roth contribution, it would be better to go with the Roth to provide some tax diversification. All of this also applies to you because you could make a spousal contribution using his income if you are not working.
Permalink Submitted by Alan - IRA critic on Tue, 2014-04-15 19:05
If he cannot deduct a traditional IRA contribution, and your joint modified AGI is not too high to contribute to a Roth, then a Roth contribution is always better than a non deductible TIRA contribution, and also better than not contributing at all. If he could deduct a TIRA contribution and also could make a Roth contribution, then the choice should be made on whether your current marginal tax rate is lower or higher than you expect it to be in retirement. If higher, make the deductible contribution to a TIRA, if lower then make the Roth contribution. If you have no idea about future tax rates and also never made a Roth contribution, it would be better to go with the Roth to provide some tax diversification. All of this also applies to you because you could make a spousal contribution using his income if you are not working.