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Here's the situation. My wife has a Roth account -- but she is retired now and has already withdrawn all the money. I, however, am not yet retired and still have earned income. Can I contribute to a spousal Roth account for her? And, if so, can it just be the same old Roth account that she had from before? (If so, since that account is already well over 5 years old, it seems that any funds placed there could be withdrawn at any time.)

culcha
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If you have sufficient income, you wife can contribute to a ROTH.

I don't know about the 5 year rule for an inactive account. Often, there is a few cents left in the account. Maybe, it is still an active account.

Contributions can be withdrawn at any time. The only question would be earnings. She is likely over 59 1/2 and there wouldn't be any penalties.

If she is going to withdraw the funds in the near future, what is the use of contributing to a ROTH?
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If she is going to withdraw the funds in the near future, what is the use of contributing to a ROTH?

I was thinking mainly of the flexibility that this account would offer -- and the (probably) higher return than could be made by parking the money in a savings account. By flexibility I mean she could take the funds out in three years, say, if she needed them. Or she could let them ride for a dozen or so years if she didn't need them. (It's not that we intend to use the funds quickly, but we have the possibility.)

culcha
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I was thinking mainly of the flexibility that this account would offer -- and the (probably) higher return than could be made by parking the money in a savings account.

The only risk would be income tax on earnings, which really isn't much of a risk. Contributions are withdrawn first, and are not subject to income tax or penalties.

The funds could be invested in the same investments whether or not they are in a ROTH. The only difference is if the account is aged enough to make the earnings non-taxable.
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