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Learning, Sharing, and Teaching => Taxes => Topic started by: MMMarbleheader on July 21, 2017, 10:19:09 AM

Title: Spousal IRA Question
Post by: MMMarbleheader 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.

Title: Re: Spousal IRA Question
Post by: terran 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