The Motley Fool Discussion Boards

Previous Page

Financial Planning / Tax Strategies

URL:  http://boards.fool.com/what-would-the-roth-eligibility-be-for-a-spouse-10453604.aspx

Subject:  Re: Roth eligibility Date:  12/9/1998  8:01 AM
Author:  TMFTaxes Number:  6926 of 123001

[[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
Roy

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 (