Your Answer

I'm a 27-year-old woman who got married two years ago. Before I got married, I made annual deductible contributions to my employer-sponsored IRA, but last year I couldn't because my husband had an employer-sponsored pension plan. If I file my taxes jointly, can I make a contribution now that the Taxpayer Relief Act of 1997 has gone into effect? Maybe, depending on your combined income. One of the benefits of the Taxpayer Relief Act of 1997 for married taxpayers, aside from the creation of Roth IRAs, is the lifting of some restrictions on IRA contributions for married couples who file jointly. Beginning in Tax Year 1997, each spouse can contribute up to $2,000 to his or her IRA, even if one spouse participates in an employer-sponsored retirement plan and as long as their combined income is less than $160,000. So, the total combined contributions that can be made to both IRAs can be up to $4,000 for the year, assuming the Modified Adjusted Gross Income (MAGI) does not exceed $150,000 (as the amount of the allowable deductible contribution phases out at between $150,000 and $160,000). Previously, if one spouse participated in an employer-sponsored retirement plan, the total combined contributions to both IRAs could not be more than $2,250.

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National City Investment Management Company (IMC) serves as investment adviser to Armada Funds for which it receives an investment advisory fee. Shares of Armada Funds are distributed by Professional Funds Distributor, LLC (PFD), 760 Moore Road, King of Prussia, PA 19406. PFD is not affiliated with IMC and is not a bank.