Roth Contribution for surviving spouse based on decedent earned income.
Taxpayer passed away in 2014 and had W-2 income of $100k. Surviving spouse was unemployed. Modified AGI will below Roth contribution limits. Is it possible for surviving spouse to contribute to Roth for 2014 based on deceased spouses earned income? I could only find PLR 8439066 that IRS ruled that executor could NOT make a regular IRA for decedent (or the decedent’s surviving unemployed spouse).
Permalink Submitted by Alan - IRA critic on Wed, 2014-10-22 22:38
Yes, the surviving spouse can make a spousal contribution provided a joint return is filed with the decedent and surviving spouse had lower earned income than decedent which is the case here, and modified AGI does not exceed the Roth limits.
Permalink Submitted by David Huntoon on Thu, 2014-10-23 03:24
Thank you… 2 questions/comments 1) I am not sure about your comment about “surviving spouse had lower earned income than decedent” 2) i can not seem to locate a site for this. any ideas?
Permalink Submitted by David Huntoon on Thu, 2014-10-23 03:55
I found a PLR that supports non-working spouse IRA contribution based on deceased spouse is allowed – PLR 8527083.
Permalink Submitted by Alan - IRA critic on Thu, 2014-10-23 04:28
Permalink Submitted by Alan - IRA critic on Thu, 2014-10-23 04:35
Permalink Submitted by Alan - IRA critic on Thu, 2014-10-23 04:37
See p 12 of pub 590 re lower income spouse only eligible recipient of spousal contribution.
Permalink Submitted by Gary Rosner on Tue, 2015-02-10 00:43
Assuming the same example as outlined above (Wed, 2014-10-22 17:00 — David), and providing no Roth contribution was made for the tax year by the decedent (or surviving spouse) and providing that the decedents Roth was rolled over into the surviving spouse’s Roth; Then can the surviving spouse contribute to his own Roth IRA with his catchup spousal contribution (e.g. 6,500) and also make an additional contribution (e.g. 6,500) that represents the roth contribution the decedent did not make while alive?
Permalink Submitted by Alan - IRA critic on Tue, 2015-02-10 03:10
Surviving spouse can make a contribution for themself including a spousal contribution using decedent’s income, however a contribution cannot be made for the decedent. See this article: https://irahelp.com/slottreport/you-cant-make-ira-contributions-deceased-person