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Learning, Sharing, and Teaching => Investor Alley => Topic started by: jamesbond007 on October 28, 2016, 12:00:59 PM

Title: Non-working wife contribution to tIRA/Roth IRA
Post by: jamesbond007 on October 28, 2016, 12:00:59 PM
So we file jointly and my income is around $200K. My wife is a stay at home mom. So can she contribute to tIRA directly? I plan to do a backdoor Roth next month. Can she do that too? What's the impact on taxes? Can we claim a deduction coming from her?
Title: Re: Non-working wife contribution to tIRA/Roth IRA
Post by: zephyr911 on October 28, 2016, 12:03:42 PM
http://www.moneycrashers.com/spousal-ira-rules-eligibility/
Title: Re: Non-working wife contribution to tIRA/Roth IRA
Post by: seattlecyclone on October 28, 2016, 12:13:01 PM
She will be able to make a full IRA contribution of some sort because of the spousal IRA rule. Since your wife is not covered by a work retirement plan, she can make a full-sized deductible traditional contribution if your MAGI is under $183k. This could be the case if, for example, your gross compensation is $200k and you contribute $18k to a traditional 401(k). She can make a full "front door" Roth contribution if your MAGI is below $184k. She can make a "back door" Roth contribution at any income level, provided she has no existing traditional IRA funds.
Title: Re: Non-working wife contribution to tIRA/Roth IRA
Post by: Vagabond76 on October 28, 2016, 02:22:36 PM
One strategy for married early retirees is to earn $11,000 in compensation between the two of them so they can continue making IRA contributions.  Part-time/side gig would do it.
Title: Re: Non-working wife contribution to tIRA/Roth IRA
Post by: jamesbond007 on October 28, 2016, 03:49:48 PM
Great. Thank you. My MAGI would be under $183K for sure. I will wait till Feb/Mar to make sure it actually is less than that and do it then. Thanks.