You should remember that even though an IRA for your wife would not be deductible under your current circumstances, the income earned on the contribution is tax deferred and still a great way to save for retirement. Without any earned income and your salary level, her options are limited.

You were wise to step up your life insurance. Disability insurance is particularily important now that yours is the only income. Most experts recommend disability insurance to cover 45-60% of your gross income. Remember that you'll also need available cash to cover your expenses during your policy's elimination period.

Finally, I'm not an expert in employment law or MA unemployment policy but my understanding is that when you return from maternity leave, a company is required to give you your existing or an equal position. Going from full to part time wouldn't really qualify as the same position and the decision to leave, as difficult as it was, was hers. When you submit an unemployment claim, the state verifies everything with your previous employer. The employer can dispute the claim. However, a call to MA unemployment for verification of the rules won't hurt anyone.

Good luck!

Zip Code: susan@mdtaxes.com

Thanks, Susan.

Zip Code: joes765@yahoo.com