Author Topic: Roth 401K and IRA-Is it legal to double count income?  (Read 1343 times)

gradstudent

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Roth 401K and IRA-Is it legal to double count income?
« on: March 13, 2014, 09:14:29 AM »
I am a married, full time grad student and in the Reserves. I am eligible for the TSP (the federal government's version of a 401k plan) and contribute through a 100% after tax contribution. Over the course of a year, my total income will be under the $17,500 contribution limit. My question is, can I also contribute to my Roth IRA based off my wife's earnings? I know that if I had no income I could, but I can't figure out from the IRS website whether I can do this or not since I am already saving in the ROTH TSP. Per the IRS, I will not be considered covered by a retirement plan since I will not be on active duty this year (I hope). We file taxes jointly.

I have looked here, http://www.irs.gov/Retirement-Plans/Retirement-Plans-FAQs-on-Designated-Roth-Accounts
here, http://www.irs.gov/publications/p590/ch01.html#en_US_2013_publink1000230412 and here http://www.irs.gov/publications/p590/ar01.html

beltim

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Re: Roth 401K and IRA-Is it legal to double count income?
« Reply #1 on: March 13, 2014, 09:55:19 AM »
As long as the two of you are under all of the appropriate income limits, you can still use your wife's earnings to contribute to a Roth IRA in your name.  See the "Tom and Darcy" example in your second link.