Roth Ira Contributions for Spouse

[Guest gzwick26]

My wife and I both have a Roth Ira. My wife did not work in 2006 but I made enough money to contribute for both of us....($4,000 each)....Am I correct that I was able to do this.. Did I have to open up a different "spousal" IRA or was I correct in just contributing to her existing IRA already? Thanks for any help.

[John G]

Based upon the facts you provided, it looks like you are correct.

You can fund both your IRA or Roth based upon your earned income. Your spouse does not need any earned income. However, both of you may or may not qualify based upon total income and/or filing status type issues.

Once you determine you qualify, you can put your contributions (or your spouses) into any IRA or Roth account that you choose. Be sure to designate which tax year is the basis for the contribution - you could contribute 8,000 in January, but it might be 4000 for last year and 4000 for '07. You do not need a special "spousal qualified" IRA or Roth.

I believe this spousal option was developed to give 1 worker households the same retirement planning options as two worker households. The spousal earnings option has been around for a number of years.

Note, there is a bump up in max contribution if you are age 50+. Watch each year to determine the max amounts. I expect the 4K to be ramped higher.

[Guest gzwick26]

Thank you. We are not above the maximum amount for earnings. I was the only worker in 2006 and already contributed to both of our Roth Ira's last year. I just wanted to be sure that I was correct in being able to do this. Thanks again for your help.

[John G]

We aim to be helpful. Post again if you have other questions.