IRA Contribution Question
Can a married individual (age 64 and filing a joint tax return) who has earned income and is a participant in a qualified plan (wife has no earned income) contribute after tax dollars to a traditional IRA? Can he contribute $5,000 per year if his AGI is $190,000?
Permalink Submitted by Alan Spross on Wed, 2009-12-09 17:24
Anyone with earned income and not yet 70.5 can contribute to a TIRA, but this individual will not be able to deduct the contribution. Having reached age 50, the contribution can be $6,000. A spousal contribution can also be made for the non working spouse (6,000 if she has reached 50, 5,000 otherwise) unless she has reached 70.5. Spouse cannot deduct the contribution either at this joint income level. Form 8606 should be filed separately for each spouse making a non deductible contribution.