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Subject:  Re: Housewife and IRAs Date:  3/4/2004  3:20 PM
Author:  TMFPixy Number:  39674 of 88486

Greeting, jkburnett, and welcome. You asked:

My wife quit her paying job to take care of the kids at home a couple of years ago. I contribute to my company's 401k. Our AGI is $85,000.

Can we contribute $3000 to my wife's IRA (a roll-over IRA from her previous job)? Is it deductible? OR contribute to a ROTH IRA in her name?

In addition, can we contribute $3000 to my Roth IRA?

If you file a joint return and as long as your joint modified AGI is less than $150K, only one of you has to be working to permit a fully deductible contribution to the unemployed spouse's traditional IRA. Based on your stated income and provided she is under age 70.5, then that means you may contribute up to $3K to your spouse's rollover IRA and fully deduct that contribution. You may also contribute up to $3K to your own Roth IRA. For details, see pages 14 and 55 of IRS Publication 590 (Individual Retirement Arrangements) available for download at,,id=97819,00.html.

Hope that helps.

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