Skip to main content
No. of Recommendations: 0
Does it then follow that if my spouse makes more than $250 but less than $2000 her contribution would then be limited to being no more than her earnings. As I understand it, that is true on a "regular" IRA. Or am I still out in left field somewhere?

IMHO, you are at least somewhere behind the shortstop.

All the key information has been provided in two posts: 24361 by TMFPixy/Dave Braze, which says the following regarding the term "spousal IRA":

In years past it was a term specifically defined by the IRS in Publication 590, and meant an IRA that received a contribution made for a spouse who earned less than $250 in the year. Now, while no longer specifically mentioned in the publication, it means an IRA contribution made for a spouse who makes less than $2K per year.

and 24463 by TMFExRO/Phil Marti, which summarizes it very clearly:

If between you there's $4,000 in taxable compensation, a/k/a earned income, and you file a joint return, each of you can contribute $2,000 to a Roth IRA if your joint AGI is under $150,000. There used to be a $250 limit for spousal contributions to an IRA, but that's long gone.

In short, there is no longer any relevance to the figure "$250" regarding spousal IRAs.

Hope this helps,
Phooley in Phoenix

Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
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.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! 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.