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Author: cptchaz One star, 50 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75381  
Subject: Roth IRA Contribution Question Date: 4/19/2007 9:12 AM
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A quick, and probably easy question....

My wife has a Roth IRA, to which we have always made automatic contributions. She recently stopped working to take care of our first child.

Can we continue to contribute funds to her Roth from what is essentially only my paycheck, since she has no income?

Thanks,
CHUCK
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Author: FoolinGrapeApe Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 56925 of 75381
Subject: Re: Roth IRA Contribution Question Date: 4/19/2007 9:17 AM
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Hi Chuck,

The answer is here: http://www.fool.com/ira/ira02.htm.

If you have earned income, then you may contribute to a Roth IRA regardless of your age, provided your modified AGI doesn't exceed certain limits.

Since your wife no longer has earned income, she can no longer participate in the Roth.


Grape

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Author: ziggy29 Big funky green star, 20000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 56926 of 75381
Subject: Re: Roth IRA Contribution Question Date: 4/19/2007 9:24 AM
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>> Since your wife no longer has earned income, she can no longer participate in the Roth. <<

Not so. If he has enough earned income to cover contributions for both himself and his wife and they meet the AGI requirements, his earned income can fund Roths for both of them -- assuming they file jointly.

#29

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Author: IndecisiveFool Big funky green star, 20000 posts Top Favorite Fools Top Recommended Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 56927 of 75381
Subject: Re: Roth IRA Contribution Question Date: 4/19/2007 9:33 AM
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Since your wife no longer has earned income, she can no longer participate in the Roth.

That would be incorrect. From page 58 of Publication 590:

Can you contribute to a Roth IRA for your spouse?
You can contribute to a Roth IRA for your spouse provided the contributions satisfy the spousal IRA limit discussed in chapter 1 under How Much Can Be Contributed, you file jointly, and your modified AGI is less than $160,000.

http://www.irs.gov/pub/irs-pdf/p590.pdf

The modified AGI listed above is for 2006. It increased to $166,000 for 2007.

IF

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