IRAs Versus 401(k)s--Which Is Better? We have been warned to be careful about calling a spouse who works inside the home a nonworking spouse. We do it only to differentiate between those people who earn income and those who do not. Forgive us, please --we do not mean to imply that stay-at-home moms and dads do not work. Quite the opposite: These folks put in long, hard days, and rarely get to leave their job behind. 92 The dollar amount that you can take out each year is calculated using your life expectancy. So, if you have $30,000 in your IRA and you expect to live another 30 years, you can take out $30,000 divided by 30, or $1,000 per year. For most people, this will not make much sense because most people try to get at a lump sum of money for a special purpose; a little money over a long period of time is useless to them. Nondeductible IRAs There are now three types of nondeductible IRAs, as you'll learn in this section. Nondeductible IRA: The Plain-Vanilla Type While you'll want to read the text below, the choice is simple: if you qualify for a Roth IRA, do it ... end of discussion. However, if you're reading this section it's probably because you make too much money and can't qualify for a deductible IRA or a Roth IRA. If that's you, read on. · No-income-limit IRAs--For the heavy hitters out there, singles who earn more than $110,000 and couples who earn more than $160,000, this is the only IRA available. You can still contribute up to $2,000 ($3,000 in 2002) after taxes. All other rules remain the same. If you make less, pick another IRA option.