Author Topic: Spousal IRA Question  (Read 286 times)

MMMarbleheader

  • 5 O'Clock Shadow
  • *
  • Posts: 95
Spousal IRA Question
« on: July 21, 2017, 10:19:09 AM »
I have a spousal Roth IRA set up for my stay at home wife which we max out every year.

I thought that I was phased out of deduct-ability for a traditional IRA because our household income is greater than $98k of which my wife has no earned income.

I was reading into it and there is another income limit of "spouse (me) participates in a workplace retirement plan" of $183k. Now does my wife need earned income to have the contribution be deductible? Or can we add the $5500 to her IRA and get the deduction because technically she isn't covered by a workplace plan.

terran

  • Pencil Stache
  • ****
  • Posts: 629
Re: Spousal IRA Question
« Reply #1 on: July 21, 2017, 10:27:19 AM »
I think you should be good to go. I haven't seen anything that changes the deduction limits based on where the income comes from, and your wife does not have a plan at work. Not a definitive source, but http://www.marketwatch.com/story/how-to-take-advantage-of-spousal-iras-2015-02-24 would seem to agree.

Also, the limit is $186k this year: https://www.irs.gov/retirement-plans/2017-ira-deduction-limits-effect-of-modified-agi-on-deduction-if-you-are-not-covered-by-a-retirement-plan-at-work