IRA contribution
Hi,
This is a question with regards to some one who is over 70 1/2, but still working so he has earned income. I know that once you hit 70 1/2, then you can not make contribution to a traditional IRA. However,if his income qualifies him, he can make contribution to Roth. Here is the question, can the spouse who is not working (no earned income), make contribution to spousal IRA? Will the spouse’s age matter? If the spouse is younger than 70 1/2? Older than 70 1/2? I would reasonally reasoning the spouse will qualify Roth if the income is more than enough to cover both IRA contribution. Thanks for your help.
Julia
Permalink Submitted by Alan - IRA critic on Fri, 2014-02-28 18:31
As long as one spouse has the earned income to make a spousal contribution for the lower earning spouse, the age of the lower earning spouse determines the type of contribution. If the lower earning spouse will have reached 70.5, the contribution can only be to a Roth IRA. But if the joint modified AGI is too high for a Roth contribution, then no Roth contribution can be made for either spouse.
Permalink Submitted by Julia zhai on Sat, 2014-03-01 02:31
Thanks so much Alan. The age determined as reached 70 1/2 is by the end of tax year say 12/31 of the current tax year. Is that correct?Julia
Permalink Submitted by Alan - IRA critic on Sat, 2014-03-01 02:52
Correct.