Am I allowed to set up a spousal Roth IRA for my wife (not working), in addition to a Roth IRA for myself?

Question

I currently have a Roth IRA under my name. My wife and I file a joint tax return. My wife does not work so I'm wasn't sure if I was able to set up an spousal Roth IRA, in addition to the Roth IRA I have. If so, what limitations are there (ie income limits)?

Answer 1

Yes you can setup a Roth IRA for your non-working spouse. You can contribute up to $4000 to your own IRA and $4000 to your spouse. If you are age 50 and above, you can contribute $5000 to your IRA. If your spouse is 50 and above too, you can contribute $5000 to her IRA. If she's not 50 and above, then $4000.

Now if the combine income of you and your spouse is above $160,000, none of you qualify for a Roth IRA until 2010.

Answer 2

Yes, you can set up a Roth IRA for a non-working spouse, assuming that you can contribute for yourself. You can make your 2006 contribution up to April 15, 2007. The limit for 2006 contributions is $4,000 for each of you, assuming that your AGI is under $150,000, plus an additional $1,000 for each of you who is 50 years old, or older, at the end of 2006.

If your AGI is over $160,000 then no Roth contribution is permitted. If it is between $150-160,000, then a smaller contribution would be allowed. Also, the total amount you contribute cannot exceed your taxable wages and net self-employment income.

Answer 3

As long as your income is under $160,000 you can set up Roth IRAs. If your spouse is not working, she can open a Roth IRA. You do not set it up, but you can fund it.

The maximum contribution is $4,000 ($5,000 if over age 50), or your earned income minus your 2006 IRA contribution, whichever is less.

Answer 4

Yes, you can set up a spousal IRA. Congress decided a few years ago that a non-working spouse is important even though there is no pay involved.