The Motley Fool Discussion Boards

Previous Page

Financial Planning / Tax Strategies


Subject:  Re: Roth eligibility Date:  12/9/1998  8:01 AM
Author:  TMFTaxes Number:  6926 of 127549

[[What would the Roth eligibility be for a spouse with a very small earned income? I'm basically a
non-working spouse, but have about $350 in earned income for 1998. Can I open a spousal Roth
IRA in the full amount of $2000, or am I only eligible to contribute up to the amount of my earned
income? We file jointly and meet the AGI requirements.

Does this small income disqualify me as a non-working spouse?]]

Under the OLD rules, the small amount of earned income would have caused you a problem with respect to a full spousal IRA deduction. But under the NEW rules, if both you and your husband have at least $4k of earned income, you would be able to make a $2k "spousal" IRA (either regular or Roth). And your husband will also be able to make an IRA contribution (again, either regular or Roth). This assumes that your AGI requirements are met.

So, the bottom line, you earned income under $2k will not becessarily restrict your IRA contribution.

Hope this helps...
TMF Taxes

Want to learn more about taxes and investing? Then we have a deal for you!! The Motley Fool Investment Tax Guide is now available through Fool Mart. Be the first one on your block to own this masterpiece. There is still time available to do that tax planning (and tax saving) before the end of the year. So just click on this link ( to read more about this amazing collection of tax information. (Apologies for the shameless plug…but it is a pretty good book…if I do say so myself). In addition, if you would like to visit the Taxes FAQ (Frequently Asked Questions) area, click on and you'll be right at the home page. Pay special attention to the "archives" section. Check it out. Finally, if you need to get to the IRS web site, click on to go directly there.

Copyright 1996-2018 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us