Spare Change

Q & A

Q: If I’ve already contributed to a Roth IRA, can I still contribute to the Roth 401(k)? And will any contributions to a Roth IRA count against the $15,000 limit for a Roth 401(k)?

— Karan Manocha, Cambridge, Mass.

A: You can make contributions both to a Roth individual retirement account and the Roth 401(k). Contributions to a Roth 401(k) will not affect the amount you can contribute to a Roth IRA.

Looking ahead

A living trust offers a solid financial alternative to the standard will, and provides the quickest way for property to pass on to a family member or beneficiary, and includes some nice tax benefits.

Several good books cover living trusts in depth:

“”Make Your Own Living Trust, 7th Edition” by Denis Clifford; Nolo, 2005 ($39.99).

Covers different types of trusts and choosing beneficiaries and trustees.

“”Living Wills and Trusts” by Holes F. Crouch; All Year Tax Guide, 2005 ($24.95).

Presents differences between a living trust and a will, legal issues and tax benefits.

“”Living Trusts” by Doug H. Moy; John Wiley & Sons, 2004 ($39.95).

Discusses living trust pros and cons.

Money tip

Several Web sites provide insights on how to manage and consolidate debt. Here are just a few:

“Bankrate.com

www.bankrate .com/brm/ news/debt /debtguide 2004/consoli dating-debt.asp

Explores the causes of debt, hidden debt dangers and ways to eliminate it.

“DebtSmart

www.debt smart.com/ pages/article —0category .html

Contains articles devoted to sorting out debt issues in dozens of categories.

“DebtWizards .com

www.debt wizards.com /consolidate .html

Discusses how debt consolidation services work.