#1
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Max Roth IRA contribution ?
I am a professional poker player. I just set up a roth IRA for myself and maxxed it out at 4k for this year. My wife has no earned income but can she put anything away into a roth still?
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#2
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Re: Max Roth IRA contribution ?
Bump just wondering if my wife who has no or very little earned income in 2006 can put any money away in a Roth IRA
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#3
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Re: Max Roth IRA contribution ?
No she cannot. You cannot make a contribution to a Roth IRA that is greater than your earned income.
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#4
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Re: Max Roth IRA contribution ?
A husband and wife can each put $4K into their Roth IRA (since it's recorded by social). Being married doesn't change things in that regard. But I'm pretty sure she needs earned income to do so.
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#5
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Re: Max Roth IRA contribution ?
The Roth IRA rules allow contributions to a Roth IRA for an individual's spouse on the basis of the individual's compensation (rather than the spouse's)—i.e., a spousal Roth IRA. Source: Treas. Reg. 1.408A-3, Q&A 4 or Publication 590.
You are not allowed to use the same $4k of income as you use for yourself. Therefore, as long as you have $8k of earned income, you can effectively put $8k into a Roth, if you are married. You still have to be under the AGI limit to make a spousal Roth IRA contribution. |
#6
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Re: Max Roth IRA contribution ?
[ QUOTE ]
The Roth IRA rules allow contributions to a Roth IRA for an individual's spouse on the basis of the individual's compensation (rather than the spouse's)—i.e., a spousal Roth IRA. Source: Treas. Reg. 1.408A-3, Q&A 4 or Publication 590. You are not allowed to use the same $4k of income as you use for yourself. Therefore, as long as you have $8k of earned income, you can effectively put $8k into a Roth, if you are married. You still have to be under the AGI limit to make a spousal Roth IRA contribution. [/ QUOTE ] So your saying if I I am under the AGI limit I can sack away 4k for me and 4k for here even tho she only had like $1k earned income in 2006? Im guessing thats because when u file jointly u can do that? |
#7
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Re: Max Roth IRA contribution ?
You are correct that you would be able to contribute $4k for each of you. The reason is that you can do the same for a traditional IRA and the Roth rules for contributions refer you to the traditional rules for contributions.
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