Help with Roth IRA and Educational IRA

[Star]

Hello, I am new here and wanted to ask a question about IRAs. I have two children (ages 5 and 4) that will be going to school soon. When they start school, this will free up the money I have been paying for childcare for many years. I was thinking about investing in both a Roth IRA and Educational IRAs (I am not sure what the current name of the Educational IRA is). My DH and I file a joint tax return and our income is under $150,000. How much could I put into the IRAs? Could both my DH and I put $4000 each into a Roth IRA for a total of $8000? Is the max $2000 for each child in the Education IRA? Am I allowed to put away in both types of IRA in the same year? Any help and advice is much appreciated, thank you.

Also, if we contribute to our retirement plans at work, does this affect what we set aside on our own?

[sweeps]

Re: Help with Roth IRA and Educational IRA

Assumes you meet all qualifications and you're under 50 years old:

Maximum 2005 contribution to Roth IRA (until 4/17/06): $4,000
Maximum 2005 contribution to Roth IRA for your spouse (until 4/17/06): $4,000
Maximum 2006 contribution to Roth IRA: $4,000
Maximum 2006 contribution to Roth IRA for your spouse: $4,000
Maximum 401k contribution: $15,000
Maximum 401k contribution for your spouse: $15,000
Maximum 2005 Coverdell contribution for Age 5 child (until 4/17/06): $2,000
Maximum 2005 Coverdell contribution for Age 4 child (until 4/17/06): $2,000
Maximum 2006 Coverdell contribution for Age 5 child: $2,000
Maximum 2006 Coverdell contribution for Age 4 child: $2,000

[Star]

Re: Help with Roth IRA and Educational IRA

Thank you so much Sweepsplayer, that answered my questions very well. However, now I have one more question. If, at my DH's workplace, they match a portion of his contribution, does the Maximum 401k contribution of $15,000 include only what he contributes or does the $15,000 include both his contribution and his employer's match?

Thanks again.

[sweeps]

Re: Help with Roth IRA and Educational IRA

It's the limit on just his contribution. There is an limit on the combined amount, but it is very high -- something like $44,000.

[Star]

Re: Help with Roth IRA and Educational IRA

It's the limit on just his contribution. There is an limit on the combined amount, but it is very high -- something like $44,000.

Thank you.