Help please!!!
I was wondering if it was possible to contribute to a Roth IRA for my wife. I earn $200,000 and she made about $4,000 from part time jobs. We file as MFJ. I know I make too much to contribute to my roth but can she contribute up to $4,000 or is she also I eligible to contribute because my income level puts us over the limit? Are her earnings considered separately from mine?
Permalink Submitted by Alan - IRA critic on Sun, 2014-04-27 03:40
For married people filing jointly, regular Roth contributions start being phased out when your joint modified AGI exceeds 181,000. If you have enough adjustments to income and cap losses your MAGI could drop low enough to contribute. You either can both contribute or neither as this is a joint income consideration. Otherwise, if either of you does not have pre tax IRA accounts, you could make non deductible TIRA contributions and then convert them tax free to a Roth. For the spouse that has pre tax IRA accounts, that spouse can contribute, but the conversion would be mostly taxable.
Permalink Submitted by Frank Nanfara on Mon, 2014-04-28 01:33
Thanks Alan. That’s what I needed to know. Basically whether it was a both or neither deal as was confused about the spousal rule,