Unemployed spouse Non-deductible IRA Contribution Limits
How much can 51 yr old unemployed spouse contribute to a non-deductible IRA in ’09 so that can convert to Roth in ’10?
How much can 51 yr old unemployed spouse contribute to a non-deductible IRA in ’09 so that can convert to Roth in ’10?
Permalink Submitted by Alan Spross on Thu, 2009-03-26 03:40
Provided that the total 2009 IRA contributions of both spouses do not exceed the earned income of the working spouse, he can contribute 6,000 for 2009. He would need to file Form 8606 to report the non deductible contribution.
I assume their joint modified AGI is too high for a regular Roth spousal contribution, otherwise the spousal contribution should be made to a Roth IRA as a regular Roth contribution instead of to a TIRA as a non deductible contribution.
Permalink Submitted by DAN KINNEY on Thu, 2009-03-26 11:28
The husband makes too much for Roth and his non-working wife earns nothing and the idea is to build up as much as possible in the non-deductible to max Roth conversion.
Permalink Submitted by charles lore on Fri, 2009-03-27 01:09
Be aware of pro rata rule. If you put in a non deductible contribution and you have existing deductible and or earnings you will never get it out unless
the taxable amount comes out along with it in proportion.