How much money can I contribute to an IRA if my salay is 67000 and wifes is 112000?

Answer 1

It depends more on your age rather than income.

If you are not eligible for any other retirement accounts through your place of work, and under the age of 50, your maximum contribution is $4000. If you are 50 or older, the limit is $5000. These are individual limit amounts.

So if your wife meets the same criteria (not eligible for any other retirement accounts), the same limits apply for her as well, making your combined limits $8000, $9000 or $10000 depending on your ages.

Answer 2

You can contribute $4000 per year, or $5000 if you're over age 50, but probably can't take a deduction for the contribution. You'd still get the benefit of tax-deferred grown, though.

Rules depend on whether either or both of you has a retirement plan at work, and your question didn't give that info.

If you make a non-deductible contribution, be sure to file form 8606 so the post-tax characterization of the contribution is preserved - otherwise you could find yourself paying taxes on the money you put in originally when you take it back ou.

Answer 3

You are over the income limit for making Roth IRA contributions. But there are no income limits for contributions to traditional IRAs. Both you and your wife can contribute $4,000 for tax year 2007. If either or both of you are age 50 or older by December 31, you can add an additional $1,000 "catch-up" contribution.

Amendment: Please note that there may be strategies which would enable you to make Roth IRA contributions even with your high salaries. Specifically, suppose that you and your wife are able to max out, or nearly max out, your 401k at work. The amount of your 401k contributions won't be included in your AGI on your 2007 tax return. This is a way to get under the $156,000 married-filing-jointly limit on full Roth IRA contributions. Maxing out both your 401k and your IRA is extremely aggressive saving, but you may have the income and lifestyle to do it. At least it's something to think about.

Another possibility is to stick with the traditional IRA for now, but plan on converting it to a Roth IRA in 2010, when the income limits for making the conversion are eliminated.

Answer 4

just wondering if people even look stuff up before answering, here is a quote from another site

Can anyone open a Roth IRA?

No. There are some income restrictions for Roth IRAs.

Individuals earning less than $95,000 can make a full $3,000 contribution. A partial contribution can be made for those with incomes between $95,000 and $110,000.
Married couples earning less than $150,000 can make a full $3,000 contribution for each spouse, as long as either or both spouses have $4,000 in earned income.
Individuals earning between $95,000 and $110,000 can make a partial contribution, with those earning over $110,00 being ineligible to contribute.
Married couples earning between $150,000 and $160,000 can make partial contributions, with those earning over $160,000 being ineligible to contribute.
If you are age 50 or older, you can contribute an additional $500 as a catch-up contribution.

Answer 5

The rate is not related to income, but to age.

http://beginnersinvest.about.com/cs/iras/a/iracontribution.htm

Answer 6

If you're both under 50yrs old , $4,000 each or over 50, $5,000 each, however this changes each year.

Answer 7

The maximum amount for both of you.