Author Topic: Roth IRA contribution question  (Read 2605 times)

FastStache

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Roth IRA contribution question
« on: February 06, 2014, 04:44:49 PM »
If my wife is a SAHM and had no income can I still make a Roth IRA contribution in her name for 2013?

eman resu

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Re: Roth IRA contribution question
« Reply #1 on: February 06, 2014, 04:59:53 PM »
From Pub 590:

Can you contribute to a Roth IRA for your spouse?   You can contribute to a Roth IRA for your spouse provided the contributions satisfy the Kay Bailey Hutchison Spousal IRA limit discussed in chapter 1 under How Much Can Be Contributed, you file jointly, and your modified AGI is less than $188,000.

Kay Bailey Hutchison Spousal IRA Limit


For 2013, if you file a joint return and your taxable compensation is less than that of your spouse, the most that can be contributed for the year to your IRA is the smaller of the following two amounts:

    $5,500 ($6,500 if you are age 50 or older), or

    The total compensation includible in the gross income of both you and your spouse for the year, reduced by the following two amounts.

        Your spouse's IRA contribution for the year to a traditional IRA.

        Any contributions for the year to a Roth IRA on behalf of your spouse.

This means that the total combined contributions that can be made for the year to your IRA and your spouse's IRA can be as much as $11,000 ($12,000 if only one of you is age 50 or older or $13,000 if both of you are age 50 or olde




T-Rex

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Re: Roth IRA contribution question
« Reply #2 on: February 07, 2014, 04:21:16 AM »
I have done some reading and I am still pretty damn confused about what a modified AGI is.

foobar

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Re: Roth IRA contribution question
« Reply #3 on: February 07, 2014, 06:44:38 AM »
It is like AGI but they add a bunch of stuff back in: https://turbotax.intuit.com/tax-tools/tax-tips/IRS-Tax-Return/What-Is-the-Difference-Between-AGI-and-MAGI-on-Your-Taxes-/INF22699.html .  It has always struck me as complexity for complexity sake.

I have done some reading and I am still pretty damn confused about what a modified AGI is.

madage

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Re: Roth IRA contribution question
« Reply #4 on: February 07, 2014, 02:02:03 PM »
It is like AGI but they add a bunch of stuff back in: https://turbotax.intuit.com/tax-tools/tax-tips/IRS-Tax-Return/What-Is-the-Difference-Between-AGI-and-MAGI-on-Your-Taxes-/INF22699.html .  It has always struck me as complexity for complexity sake.


And just to add to the complexity, the definition of MAGI changes depending on the deduction.

FastStache

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Re: Roth IRA contribution question
« Reply #5 on: February 10, 2014, 08:45:28 PM »
Thanks for the reply and we are in the clear. We made about 105K, so I will open an account in her name.