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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

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