Help us end the fiscal year strong. Donate by June 30. Give Now
Ask Money

Roth-IRA

Chris Farrell Jul 30, 2010

Question: My wife is a teacher and has a 403b. We also have a Roth IRA set up for her as well. My accountant says that she can only have the 403b plan. I had my financial advisor look into it, he said she can have both as long as we don’t make over $169,000. Can you shed some light on the subject at hand. Thank you for your time. Jeff, Goleta, CA

Answer: Your financial advisor is right: She can contribute to a Roth (in addition to her 403(b)) so long as your household comes under the Roth income limits.

For married couples filing jointly for calendar year 2010, the full contribution to a Roth starts phasing out when adjusted income reaches $167,000. You can’t contribute at all with a combined income of $177,000 or more. (For single filers, the comparable figures are $105,000 to $120,000.)

The contribution limits for 2010 are $5,000 for those 49 years old and under. It’s $6,000 if you’re age 50 or more.

There’s a lot happening in the world.  Through it all, Marketplace is here for you. 

You rely on Marketplace to break down the world’s events and tell you how it affects you in a fact-based, approachable way. We rely on your financial support to keep making that possible. 

Your donation today powers the independent journalism that you rely on. For just $5/month, you can help sustain Marketplace so we can keep reporting on the things that matter to you.