Married couple, Husband makes $250K and has retirement plan, wife works part time at $20K and no retirement plan.
Can she contribute to a deductible IRA?
Can she contribute to a ROTH?
Thanks!
Can she contribute to a deductible IRA?
Can she contribute to a ROTH?
Thanks!
Permalink Submitted by Alan - IRA critic on Thu, 2018-03-29 01:32
Her TIRA contribution deduction is phased out once their joint modified AGI exceeds 186k for 2017. If 250k is gross, the joint MAGI is probably over 186k. The same limits apply for her regular Roth contribution purposes. Phaseout starts at 186k MAGI and contributions are completely eliminated for both at 196k. However, she can make a non deductible TIRA contribution and convert it to Roth tax free if she has no other non Roth TIRA balance. This is the back door Roth strategy.