Re: IRA contribution
your wife had a 401k that was rolled onve into an IRA with Vanguard.
Ask and find out what type of IRA it is whether ROTH or Traditional as they have different qualities.
If she can contribute to her current employer go with that expecially if they have company matching. If they don't and she is less than 50 maximum are 4000 per year.
If she is self employed now she can open a different retirement account and can place up to 40k away each year.
Find out what type it is. With a traditional you are taxed when you start taking the money out because it is tax deferred. With a ROTH when you withdraw (after 59.5 year of age) none of it is taxed, money saved or the earnings it made. In other words it is tax exempt rather than tax deferred. with the ROTH As long as you follow the rules, you never pay taxes on your gains.
You might want to convert your traditional to a ROTH, consult a tax/finance advisor to work the numbers on that.
Good luck!
|