Establishing after tax IRA for future ROTH Conversion
My question is twofold:
1. Can my husband who is 51, making over 300k, and max-ed out on his deductible contributions via Keogh, profit sharing and 401k accounts, make an after-tax contribution to a new “traditional” IRA account for the purpose of converting it to a ROTH IRA next year? If so, what are the limitations in terms of the dollar contribution.
2. I am 51, non-working, filing joint with husband above, and have not made contributions pretax or after-tax for years. I have passive income of approximately 100k. Can I establish a new aftertax IRA account now for purposes of converting to a ROTH IRA next year? If so, how much can I contribute?
Permalink Submitted by mk foss on Mon, 2009-12-07 22:52
The limit for nondeductible IRA contributions is $6,000 for someone over 50. Your husband needs earned income of $6,000 to contribute the maximum. If you have no earned income, you can contribute $6,000 as well (being over 50), if your husband makes at least $12,000 in earned income per year. If he’s participating in a 401(k) plan, profit sharing or Keogh plan, I assume that he has earned income sufficient to allow two $6,000 contributions