I am finishing my fellowship in June 2005. My salary will be above the Roth IRA contribution limit after that. Can my wife contribute to a Roth IRA individually even though she does not work? Does the 16OK limit for contributions apply to both of us? If she can establish one now and contribute, can she continue to contribute indefinitely regardless of my income?

Zip Code: dhmcmillen@yahoo.com

If you're married, neither you nor your spouse can contribute to a Roth in any year that your adjusted gross income exceeds $160k.

Based on the little information provided, it appears that you can both contribute to a Roth IRA this year - up to $3,000 each.

And next year, will your income exceed $160k if you are in fellowship for half the year? Even though your salary starting July 1 may exceed $160k, your AGI for 2005 may fall below that threshold, allowing you to contribute up to $4,000 each.

There are ways to reduce your AGI. Contributing the max to a 401(k) plan or a 403(b) plan is one way to do so. For 2005, you can contribute $14,000 into these retirement savings account. Taking advantage of pre-tax options through your employer's flexible spending account is another way to reduce your AGI.

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