Contribute to a ROTH IRA if no earned income?
Hi,
My wife has no earned income in 2007. Can she contribute to her ROTH IRA? My income will not exceed $150K so we are eligible as we file our taxes as married filing jointly. I already contributed $4K to mine this year.
Thanks,
Dave
Permalink Submitted by Edward Czapor on Wed, 2007-12-12 23:25
Yes, she can contribute based on your earned income as a spousal IRA. She can contribute the maximum amounts allowed for 2007, $4,000 or $5,000 if age 50 or more by the end of the year. The contribution must be made by the due date of your return without extension, 4-15-08. The contribution limits increase to $5,000 and $6,000 if age 50 or more for 2008.
Permalink Submitted by Alan Spross on Thu, 2007-12-13 01:58
You apparently have the earned income for a spousal IRA contribution. But your combined modified AGI must fall below 156,000 in order for both of your Roth contributions to be made without phaseout of your contribution limits. Modified AGI can be determined from your 1040, and is broader than earned income.