roth ira

Forum|Forum|5 years ago
January 31, 2021
1 reply
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I didn't work this year but my wife did. We found out that you can still place money in both IRAs. If it will be $1000 can we place the money in my IRA even though she is the one who earned money?

macuser_22

Yes.

Kay Bailey Hutchison Spousal IRA Limit

If you file a joint return and your taxable compensation is less than that of your spouse, the most that can be contributed for the year to your IRA is the smaller of the following two amounts.

$6,000 ($7,000 if you are age 50 or older).
The total compensation includible in the gross income of both you and your spouse for the year, reduced by the following two amounts.
1. Your spouse's IRA contribution for the year to a traditional IRA.
2. Any contributions for the year to a Roth IRA on behalf of your spouse.

This means that the total combined contributions that can be made for the year to your IRA and your spouse's IRA can be as much as $12,000 ($13,000 if only one of you is age 50 or older, or $14,000 if both of you are age 50 or older).

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**