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Whoopi is happy to be back on Broadway in 'Xanadu' USA Today - Aug 3, 2008 But more money is coming in ? I say that with toes and fingers crossed." Goldberg is more ambivalent about the movie business. She announced her retirement ... 'Daphne,' by Justine Picardie Los Angeles Times, CA - Du Maurier struggles in 1957 with her husband's nervous breakdown and subsequent retirement from Buckingham Palace after his disastrous affair with a woman ... The baby's on the way. Now for some financial family planning Independent, UK - Aug 2, 2008 Women often face realistic anxieties about juggling their new family and their work commitments. "Research shows companies who adopt a positive approach to ... San Diego Union Tribune Couple can beef up retirement savings San Diego Union Tribune, United States - Jul 27, 2008 Since then she has been working for a school district and putting money into her employer-sponsored retirement plan, in which she has saved about $18000. ... Small changes add up to money in the bank Stuff.co.nz, New Zealand - Jul 26, 2008 Plunket facilitator Sally Teiniker said in some cases families were taking out personal loans to juggle their finances while coping on one income. ... When money gets tight, go back to the basics Kansas City Star, MO - Jul 19, 2008 All good advice, but try juggling it in the real world, suggests Peggy Bell of Kansas City. At 62, she is back in the job market seeking an income she can ... This Mistake Could Wreck Your Retirement Motley Fool UK, UK - Jul 17, 2008 There's no question juggling your finances isn't always easy. Unless there?s absolutely no way you can keep up with your pension contributions, cutting back ... iAfrica.com Control your own destiny! iAfrica.com, South Africa - Jul 30, 2008 Plan now: Too many women get caught up in the moment, focusing on developing a successful career or spreading themselves thinly by juggling a job and family ... Bankruptcy Filings On Rise Among Seniors Kentucky Post, KY - Jul 26, 2008 The percentage of workers very confident about having enough money for a comfortable retirement decreased from 27 percent in 2007 to 18 percent in 2008, ... We'll Help Them Over Finish Line Glasgow Sunday Mail, UK - Aug 2, 2008 From relationship problems to juggling studies with training, nothing is out with the remit of performance lifestyle coach Susie Elms and her team. ...

Juggling money in retirement plans

I have a 401(k) plan through my work. My wife's work has just offered a
401(k) option, which we'd like to take advantage of. As the end of the year nears, I've been calculating our tax situation, and I realize now I should have contributed more to my 401(k) this year.

Article continues below and (thank you)

Basically, I'd like to find a way to invest an extra $4,000 in retirement that I can also reduce my AGI by, saving just under $1,000 in tax. My wife's 401(k) plan is limited to a 25 percent maximum contribution per pay period. Given the short time before year end, we could not get a meaningful amount into it. Our AGI is likely to be above the $75,000 traditional IRA phase out for deductions, but I've heard that if my wife does not have an employee-run 401(k), the phase out for deduction is extended to $150,000, which would be well within reach.

I'm planning on opening a traditional IRA in my wife's name, transferring the $4,000 into it, then afterwards opening the 401(k) at my wife's work and rolling the IRA into the 401(k). Her 401(k) plan indicates you can roll in traditional IRAs. Do you think this is the easiest solution? From what I've read, it does seem legal. Thanks much in advance.
-- Matthew

Dear Matthew,
You've apparently done your homework. It used to be that, up until a few years ago, if one spouse was in a retirement plan at work, the other spouse was severely limited in making a deductible IRA contribution.

Now, instead of having your deduction phase out when AGI is over $75,000, a married couple with only one active participant in a plan can make a fully deductible contribution when their AGI is below $150,000. The deduction for the nonparticipating spouse is phased out between $150,000 and $160,000. Beginning in 2007, the AGI thresholds will be indexed for inflation, which will allow deductible contributions at higher income levels.

The only question of concern is when would your spouse be eligible to participate in her employer's plan if she misses the initial enrollment? She might have to wait out six months or a year before she is allowed to enroll in the company plan. But I'm sure you've already checked this out.