Several IRA questions

Submitted by Undocumented Newcomer on Fri, 2018-03-09 11:12

Background:
I am 67; Wife will be 70 ½ in 2018
Wife is retired and I work part time without benefits, making $75K/year
2017 taxable income was $230K, mostly investment income
We had no Roth conversions or IRA contributions during calendar year 2017

Questions:
Is wife eligible to make a spousal IRA contribution now for 2017 (before filing 2017 return)?
If allowed, and her Traditional IRA contribution for 2017 is made between Jan 1 & Apr 15, 2018, should it be included retroactively in the amount used to calculate her 2017 RMD?
Must her 2018 RMD (based on 12/31/17 balance) be taken before performing a partial Roth Conversion in 2018?
If non-Roth conversion income is held below $180K in 2018 & I have sufficient earned income, can wife make spousal Roth contribution for 2018?

Thank you,



Submitted by Alan - IRA critic on Fri, 2018-03-09 15:57

  • Wife can make a spousal TIRA contribution for 2017 up to 4/17 but starting in 2018 her spousal contributions are limited to Roth contributions if your joint MAGI comes down enough to fall under the Roth income limits.
  • Her spousal contribution for 2017 will not be included in her 2017 year end balance and no adjustment to include it should be made.
  • Yes, for 2018 her first TIRA distribution is deemed to apply toward her RMD, so she must complete her RMD before converting an additional amount. As indicated above she can make a spousal Roth contribution for 2018. MAGI phaseout of the Roth contribution starts at 189k.

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