seitmom
Apr 6 2002, 12:28 PM
With $3011 income in 2001 for one spouse, can the maximum ($2000@) that can be funded to both spouses IRAs.?
John G
Apr 7 2002, 05:46 PM
If you were married at the end of 2001, then the maximum combined contributions can not exceed the comined "earned" income. Dividends and interest do not count. If $3011 was the total earned income for both spouses then $3011 can be put into Roth or regular IRAs. If you are talking about 2001, then the maximum in any one persons IRA would be $2000 and $1011 could be put into the other. A relative can make the contribution... mom, dad, grandmother, etc. You could not put 2000 in two different IRAs if the maximum combined earned income was $3011.
Note in 2002, the maximum contribution for a persons IRAs jumps up to $3,000 or $3,500 if they are over age 50. Same rules apply for earned income.
I have assumed that you are not talking about one spouse making $3011 and the other 160,000. In that case, the total income would exceed $160,000 and NEITHER spouse would be able to contribute to a Roth.