Opening a Roth
My name is Victor Navon. I would like to open a Roth for my wife and myself. We do not have a Traditional IRA or a Roth presently. In Ed Slott’s Book: LOWER YOUR TAXES, page 18 says that an employee and a spouse can contribute to a ROTH, but can they start a ROTH with a max contribution of $6000 each? I am 73 and retired and my wife is 70 and is still working. She has a 403b and we will convert to a Roth when she retires. However we would like to start the new Roth now for each of us. I may be confused as to the rules. Can we start a Roth now? Thanks for a prompt response.
Permalink Submitted by Alan Spross on Mon, 2010-09-13 18:04
Victor,
You could both open Roth IRAs with regular contributions this year as long as your joint modified AGI is not too high. Your contribution would be a spousal contribution using some of the earned income from your wife. Your max contributions are 6,000 each.
To qualify to make these contributions your joint AGI must be under 177,000. Between 167.000 and 177,000 you are allowed partial contributions. Under 167,000 you can make full contributions of 6,000 each.