Message Font: Serif | Sans-Serif
 
No. of Recommendations: 0
MF community -- I was in the brokerage ‘bis for 20 yrs, but have lost my memory, lame here, but looking for some confirmation.
Qs:
i. A spouse has enough earned income to easily contribute 5k to a ROTH IRA. Can the other spouse, no earned income, open a spousal ROTH IRA and also contribute 5k?
ii. If an IRA is opened with a deadline closing in, say 4-15 with a local bank, can the funds be transferred to a new Roth IRA with a new custodian, 1-2 mo ? idea here is one is simple and needs no research, the 2nd needs some time for research, it is going to be a custodian that accepts non- conventional, but legal investments, maybe royalty interests on a friend’s discovery.
iii. Anyone know a KNBOW custodian that accepts non-conventional? Common names don’t, not worth the hassle, legal risks.
Raymond James, ? maybe>?

Thanks for any insights.
Susan400
Print the post Back To Top
No. of Recommendations: 2
A spouse has enough earned income to easily contribute 5k to a ROTH IRA. Can the other spouse, no earned income, open a spousal ROTH IRA and also contribute 5k?

Short answer: yes.

Long answer: Even though the IRS still uses the term in Pub 590 and elsewhere, there isn't really such an animal as a "spousal IRA" nowadays. For a long time, someone filing a joint return can make an IRA contribution as long as that joint return shows sufficient earned income. The contribution limit is the same for each spouse. (I'm purposely ignoring any other requirements, just dealing with the earned income question.)

ii. If an IRA is opened with a deadline closing in, say 4-15 with a local bank, can the funds be transferred to a new Roth IRA with a new custodian, 1-2 mo ?

Yes. Do it as a direct custodian-custodian transfer and the once in 12 months rollover restriction doesn't apply.

idea here is one is simple and needs no research, the 2nd needs some time for research, it is going to be a custodian that accepts non- conventional, but legal investments, maybe royalty interests on a friend’s discovery.

iii. Anyone know a KNBOW custodian that accepts non-conventional?


Google "real estate IRA" and you'll get leads to some IRA custodians that hold unconventional deposits.

Phil
Rule Your Retirement Home Fool
Print the post Back To Top
No. of Recommendations: 0
PHIL-- much thx on the spousal ira Qs etc.
You saved me lot of time.
susan400
Print the post Back To Top
Advertisement