How Much can we put into an IRA if we file jointly and have 58,000 income which includes 18K social security

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June 11, 2023
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Hello; Need some advice How Much can we put into an IRA if we file jointly and have 58,000 income which includes 18K social security. We are both over age 55

DoninGA

Age 50 or older you can contribute up to $7,500 to an IRA provided you have taxable compensation of $7,500 or greater.

Go to this IRS website for IRA contribution information - https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-ira-contribution-limits

wrjerdenAuthor

Thank You

I am a 70.5 year old man. I have $18K Social Security only. No other income.

Am I allowed to contribute to an IRA ?

I am married and have a wife age 56 who also earns $40K

Thank You !

DoninGA

As stated in the IRS website under Spousal IRA's - https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-ira-contribution-limits

If you file a joint return, you may be able to contribute to an IRA even if you didn’t have taxable compensation as long as your spouse did. Each spouse can make a contribution up to the current limit; however, the total of your combined contributions can’t be more than the taxable compensation reported on your joint return.

So, yes you can contribute to an IRA since your spouse has taxable compensation and you will be filing as Married Filing Jointly.

Since your spouse has taxable compensation of $40,000 she can contribute up to $7,500 to her IRA and you can contribute up to $7,500 to your IRA.

An IRA is per person, not combined, hence the name Individual Retirement Account.