UnThreaded | Threaded | Whole Thread (4) | Ignore Thread Prev | Next
Author: TMFPixy Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75777  
Subject: Re: teaching overseas/IRAs Date: 2/19/2001 8:01 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
Greetings, Smdiss, and welcome. You asked:

My fiancé is American, stationed here in Germany. He already has an IRA account (traditional, I believe). My question is: once we are married (in about a year), can he open a spousal IRA for me? In the MF article All About IRAs - The Ten Types (http://www.fool.com/money/allaboutiras/allaboutiras02.htm), it states that a spousal IRA "is an IRA funded by a married taxpayer in the name of his or her spouse who has less than $250 in annual compensation. The couple must file a joint tax return for the year of contribution." The working spouse can contribute up to $2000/year for his/her own IRA, and up to $2000 for the other spouse's IRA. Would we be eligible for this if I am still filing under the foreign earned income exclusion? Can anybody shed some light on this?

That piece needs slight editing as it should mirror what we have in the Retirement Plan Primer at http://www.fool.com/Retirement/RetirementPlanPrimer.htm. That says, "A Spousal IRA is either a traditional or Roth IRA funded by a married taxpayer in the name of his or her spouse who has less than $2,000 in annual compensation. The couple must file a joint tax return for the year of contribution. The working spouse may contribute up to $2,000 per year to the Spousal IRA and up to $2,000 per year to his or her own IRA. A couple, then, may contribute up to $4,000 per year provided neither IRA receives more than $2,000." Thanks for pointing out the error in the other piece to me.

In answer to your question, WHEN you marry and IF you file a joint return and IF you and your husband have sufficient joint income subject to U.S. income taxes to support the contribution, then IMHO you both would be able to contribute to an IRA under that proviso.

Unlike the previous case in this thread, you say your husband is "stationed overseas." That implies ALL of his income is subject to U.S. taxes. Thus, you won't be playing games with the tax man by just having part of otherwise excludable foreign income subjected to U.S. taxes by voluntarily subjecting that foreign income to U. S. taxation.

Regards..Pixy


Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (4) | Ignore Thread Prev | Next

Announcements

The Retire Early Home Page
Discussion on accelerating retirement day.
Pencils of Promise - Back to School Drive
"Pencils of Promise works with communities across the globe to build schools and create programs that provide education opportunities for children."
Managing Your Wealth
Our own TMFHockeypop from Rule Your Retirement fame on the TV show Managing Your Wealth.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Value Hounds

Clorox Isn't Cleaning Up
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement