Max Roth IRA contribution ?

[ilikeaces86_]

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?

[ilikeaces86_]

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

[Zag Nutz]

No she cannot. You cannot make a contribution to a Roth IRA that is greater than your earned income.

[prohornblower]

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.

[broiler]

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.

[ilikeaces86_]

[ 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?

[broiler]

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.