As long as your mother works with a real estate firm that offers no pension or profit-sharing plan, she would be eligible to set aside up to 15 percent of her annual earnings to a maximum $1,500 in an IRA. Your father's participation does not affect her own earnings. f, however, she works as an independent salesperson and her commissions are not subject to federal income tax withholding, she would be eligible to set aside funds in a Keogh Plan as a self-employed person. The 15-percent set-aside still applies, but the upper limit is $7,500.
I suggest that she put her funds into a no-load bond fund that provides an IRA pr Keogh plan. The net asset value of these funds is depressed now and should rise in the future as interest rates decline. The funds deferred until withdrawn after retirement. m
My Mother is a real estate salesperson. She would like to shelter a portion of her earnings in an individual retirement account. Is this possible if my father participates in a corporate pension plan where he works? If she is eligible, what kind of IRA should she buy?