question about opening Traditional IRA

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cis_love
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Joined: Sat Dec 02, 2017 4:53 am

question about opening Traditional IRA

Post by cis_love » Tue Dec 05, 2017 8:16 pm

I really appreciate all the advice from all you smart people and please forgive me for all my random questions. i'm so excited to be able to ask my questions to this group!
my husband and i are mid to late 40s and way behind on retirement (hubs has $150K in his 401 and we are currently contributing $1500/month). i have a small retirement plan in a traditional IRA (i no longer work) that has about $20K. I'm going to add $5500 before the year ends. I just discovered my husband can also open his own traditional IRA and put in $5500/year.
my question is i don't want a ton of different accounts open. is there any way to consolidate this somehow?
thank u.

radiowave
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Re: question about opening Traditional IRA

Post by radiowave » Tue Dec 05, 2017 8:28 pm

Hi, welcome to the forum.

You can rollover your old 401k into a traditional IRA (custodian to custodian transfer). You need to keep your husband and your IRA separate as it is linked to your social security number. However, you can add up to $5,500 to your IRA / year (6,500 > 55) and this is pretaxed, e.g. it comes off your gross income and you pay taxes when you withdraw later in retirement.
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cis_love
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Joined: Sat Dec 02, 2017 4:53 am

Re: question about opening Traditional IRA

Post by cis_love » Tue Dec 05, 2017 8:32 pm

mine is already rolled over. my question was i was wondering if there's any way to avoid 3 retirement accounts (my traditional IRA, hubby traditional IRA, hubby's work 401k).

PFInterest
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Re: question about opening Traditional IRA

Post by PFInterest » Tue Dec 05, 2017 8:36 pm

No. IRAs are individual. You each have one. Once he is no longer employed then he can roll it over.

JW-Retired
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Re: question about opening Traditional IRA

Post by JW-Retired » Tue Dec 05, 2017 8:41 pm

cis_love wrote:
Tue Dec 05, 2017 8:32 pm
mine is already rolled over. my question was i was wondering if there's any way to avoid 3 retirement accounts (my traditional IRA, hubby traditional IRA, hubby's work 401k).
Nope, no way to combine yours and hubby IRAs. An IRA is an Individual Retirement Account. Same applies to Roths and employer accounts.
JW
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cis_love
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Re: question about opening Traditional IRA

Post by cis_love » Tue Dec 05, 2017 10:24 pm

ok, thanks for those answers. can you all help me think of any other ways to boost our retirement funds?

TwstdSista
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Re: question about opening Traditional IRA

Post by TwstdSista » Wed Dec 06, 2017 6:01 am

I understand not wanting a bunch of different accounts, but think of it as a good thing -- you have more options!

The husband and I have six total retirement vehicles (my SEP, my Rollover, my Roth and his SIMPLE, his Rollover, his Roth). We could even add a tIRA each if we ever break out of the 15% tax bracket.

As for boosting your retirement funds, you are already contributing the max to each tIRA and maximizing a 401k. So I just want to say well done! I would suggest opening up a taxable account somewhere (Fidelity, Vanguard, etc) and stock funds there. You can mentally label them "retirement" and you have no limits on those contributions.

The Wizard
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Re: question about opening Traditional IRA

Post by The Wizard » Wed Dec 06, 2017 6:45 am

cis_love wrote:
Tue Dec 05, 2017 10:24 pm
ok, thanks for those answers. can you all help me think of any other ways to boost our retirement funds?
You could also spend money to convert those tIRAs to Roth IRAs, which are tax-free henceforth.
But you need to analyze and project your finances to see if this makes sense...
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Earl Lemongrab
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Re: question about opening Traditional IRA

Post by Earl Lemongrab » Wed Dec 06, 2017 1:18 pm

First you need to check to see if he is able to deduct a TIRA contribution. For 2017, a MAGI of more that 99,000 will start to reduce the deductible amount.

Is he fully contributing to the 401(k). Often that's the best and easiest choice.
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