Roth IRA for non-working spouse?


J

JJ

I read a small article about a Roth IRA for a non-working spouse. In
summary, it said you can contribute the $5000 max for your non-working
spouse if:
I have income of more than $10,000 ($5k for each of us) and our AGI is below
$150,000.
Am I reading that correct?
We haven't been able to contribute for a number of years because we both
worked and our income was too high, but she now retired. However, we were
able to open Roths for the first 5 years they were in existence, can this
contribution co-mingle with the old Roth money or do I need to keep it
separate?

Thanks,
Joe
 
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P

Phil Marti

JJ said:
I read a small article about a Roth IRA for a non-working spouse. In
summary, it said you can contribute the $5000 max for your non-working
spouse if:
I have income of more than $10,000 ($5k for each of us) and our AGI is
below $150,000.
Am I reading that correct?
Yes, assuming you're both over 50 and you're talking about "earned" income,
such as wages. Under 50 the 2007 limit is $4,000 each. In 2008 the base
limit goes to $5,000, with an additional $1,000 available to those over 50.
We haven't been able to contribute for a number of years because we both
worked and our income was too high, but she now retired. However, we were
able to open Roths for the first 5 years they were in existence, can this
contribution co-mingle with the old Roth money or do I need to keep it
separate?
No need to segregate, and there's also no separate 5 year period before
distributions become "qualified." Information about all this is in IRS
Publication 590.
 

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