Spousal IRA
For a married couple (both > 62 yrs old) filing jointly, my wife has made $5,378 of income from a job in 2020.
Unfortunately I was laid off late last year and have no 2020 employment income or unemployment benefits.
I believe she can open a RothIRA for up to $5,378. But is a spousal RothIRA an option for me and if so up to what amount?
Permalink Submitted by Alan - IRA critic on Fri, 2020-12-04 15:38
If your total earned income is 5378, then your combined contributions cannot exceed 5378. Therefore, if she contributes the entire 5378 to her Roth IRA, it leaves no room for a spousal contribution for you. If she contributed less than 5378, then the difference between what she contributed and 5378 could be made to your Roth IRA as a spousal contribution. Finally, if your wife worked as an employee, her earned income is the amount shown in Box 1 of her W-2, reduced by any amount in Box 11.
Permalink Submitted by James Schneider on Sun, 2020-12-06 21:16
Alan,Thanks for the quick and knowledgable response! This responses with the other one you answered yesterday will make my planning much easier.Regards, Jim