Limitations for non deductble IRA contribuiton
If a client is a participant in a 401k and wants to use the Backdoor roth strategy, what is the annual limit on the nondeductible amount that he can contribute to the IRA. Let’s say he earns $200k a year and his wife is not working can he also contribute for her. THank you.
Permalink Submitted by Alan - IRA critic on Fri, 2022-07-15 21:26
The usual IRA contribution limit applies, which is 6k or 7k for age 50 and above. The only income requirement is that there must be earned income from either spouse at least equal to the amount of the contribution. Therefore, the spouse can receive a spousal contribution from client’s earnings. As for the Roth conversions, if there is any other pre tax value in a non Roth IRA, the conversion will be mostly taxable. This applies separately to each spouse’s IRA accounts.