hello,
Wife and I are planning to open up a ROth account. SHe is ten yrs older than i am and will hit 59 and a half sooner. My question is if there are any limitations to us opening up the roth in her name and then contributing the maximum amt allowable. This way, we will have access to the distibutions when she hits 59 and a half.

thanks for any inputs

The maximum contribution for an individual is $4000 for 2005 and 2006 if under age 50, $4500 for 2005 if age 50 by 12/31/05, and $5000 for 2006 if age 50 by 12/31/06. A modified adjusted gross income in a year greater than $150000 lowers these limits.

The combined contributions for a married couple can't be greater than their combined earned income (W2 plus self-employment) for the year of contribution.

You can split your total contribution any way you want as long as neither of you exceeds the applicable individual limit and the total doesn't exceed earned income.

all of the prior reply, plus.... you can always take out contributions (not earnings or gains, contributions) without any penalty or tax at any time.

From a strategy perspective, you may want to burn off other assets (savings, pensions, social security, etc.) before taping into the Roth. You Roth is a great shelter and you have a lot of flexibility about the timing and amounts you withdraw.