Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
IRAs for a non working Spouse.............
Old 01-27-2006, 04:56 PM   #1
 
Posts: n/a
IRAs for a non working Spouse.............

Can anyone tell me the details for IRAs for a Non Working Spouse? - That would be me (the lazy slug).

What are the contribution limits for each person for tax year 2005? Can you only contribute to a Roth? What are the income limits? And I assume that they have to made before 4/15/06.

__________________
  Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Re: IRAs for a non working Spouse.............
Old 01-27-2006, 05:07 PM   #2
Full time employment: Posting here.
Lusitan's Avatar
 
Join Date: Jan 2006
Location: Boston
Posts: 620
Re: IRAs for a non working Spouse.............

I believe the limits for a non-working spouse are the same as for a working spouse. I'm too lazy at the moment to research it, but during years that my wife wasn't working we contributed the same amount into each of our IRA accounts; didn't matter whether it was Roth or traditional either.
__________________

__________________
Lusitan is offline   Reply With Quote
Re: IRAs for a non working Spouse.............
Old 01-27-2006, 05:20 PM   #3
Dryer sheet aficionado
Evelyne's Avatar
 
Join Date: Aug 2005
Location: Seattle
Posts: 30
Re: IRAs for a non working Spouse.............

Contribution Limits
*
2005-2007* ** $4,000
2008* * * * * ** $5,000

--------------------------------------------------------------------
Catch-Up Contributions
(if you are 50 or older as of the end of the year)
*
2005* * * * * * * * * * * * * *$500
2006 and thereafter**** *$1,000

--------------------------------------------------------------------
For ROTH IRA, any age with compensation (subject to income limits); also non-working spouses.

* Single filers income up to $95,000 (for full contribution)
* Joint filers income up to $150,000 (for full contribution)

For Traditional IRA, no income limits.
__________________
Evelyne is offline   Reply With Quote
Re: IRAs for a non working Spouse.............
Old 01-27-2006, 05:50 PM   #4
Moderator Emeritus
Martha's Avatar
 
Join Date: Feb 2004
Location: minnesota
Posts: 13,212
Re: IRAs for a non working Spouse.............

Cut, I agree with Theresa. However, only if your spouse isn't covered by a retirement plan where she works will you be able to deduct the full amount of your spousal traditional IRA from your income tax return. If I recall, your wife is covered by a retirement plan, therefor your spousal IRA is fully deductible only if your AGI is less than $150,000 and partially deductible if between $150,000 and $160,000.
__________________
.


No more lawyer stuff, no more political stuff, so no more CYA

Martha is offline   Reply With Quote
Re: IRAs for a non working Spouse.............
Old 01-27-2006, 05:57 PM   #5
Thinks s/he gets paid by the post
retire@40's Avatar
 
Join Date: Feb 2004
Posts: 2,670
Re: IRAs for a non working Spouse.............

Quote:
Originally Posted by Martha
If I recall, your wife is covered by a retirement plan, therefor your spousal IRA is fully deductible only if your AGI is less than $150,000 and partially deductible if between $150,000 and $160,000.
I thought AGI limits were $70K joint, $50K single.

Partial deduction through $80K joint, $60K single.
__________________
No man is free who is not master of himself. --- Epictetus
Enjoy Yourself (It's Later Than You Think). --- Guy Lombardo
retire@40 is offline   Reply With Quote
Re: IRAs for a non working Spouse.............
Old 01-27-2006, 06:00 PM   #6
 
Posts: n/a
Re: IRAs for a non working Spouse.............

Quote:
Originally Posted by Martha
Cut, I agree with Theresa. However, only if your spouse isn't covered by a retirement plan where she works will you be able to deduct the full amount of your spousal traditional IRA from your income tax return. If I recall, your wife is covered by a retirement plan, therefor your spousal IRA is fully deductible only if your AGI is less than $150,000 and partially deductible if between $150,000 and $160,000.
A bit confused. I thought the Lazy spouse could only contribute to a Roth and the Roth was not deductable whether you worked or not.
__________________
  Reply With Quote
Re: IRAs for a non working Spouse.............
Old 01-27-2006, 06:01 PM   #7
Moderator Emeritus
Martha's Avatar
 
Join Date: Feb 2004
Location: minnesota
Posts: 13,212
Re: IRAs for a non working Spouse.............

Quote:
Originally Posted by retire@40
I thought AGI limits were $70K joint, $50K single.

Partial deduction through $80K joint, $60K single.
If you are covered by a retirement plan at work, you can take an IRA deduction if your modified adjusted gross income is less than $85,000 (married filing jointly) or $60,000 (single or head of household). (These are the 2006 numbers.) But CT isn't working. The rules are more generous for a IRA for the nonworking spouse.
__________________
.


No more lawyer stuff, no more political stuff, so no more CYA

Martha is offline   Reply With Quote
Re: IRAs for a non working Spouse.............
Old 01-27-2006, 06:05 PM   #8
Moderator Emeritus
Martha's Avatar
 
Join Date: Feb 2004
Location: minnesota
Posts: 13,212
Re: IRAs for a non working Spouse.............

Sorry for confusion CT.

If your Joint AGI is less than 150,000, you could contribute after tax money to a ROTH. Both you and your wife could do this.

If your Joint AGI is less than 150,000, you have the option of setting up a traditional deductible IRA for yourself.

You can put some in a Roth and some in the traditional IRA if you want, just so you keep your total at no more than $4500 for the year.

EDIT: the IRS publication is here: http://www.irs.gov/publications/p590/

__________________
.


No more lawyer stuff, no more political stuff, so no more CYA

Martha is offline   Reply With Quote
Re: IRAs for a non working Spouse.............
Old 01-27-2006, 06:25 PM   #9
 
Posts: n/a
Re: IRAs for a non working Spouse.............

OK, Thanks - I get my taxes done but I wanted to do some planning.
__________________
  Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Does your spouse share your financial goals? JustCurious FIRE and Money 41 02-17-2007 07:20 PM
Waiting for Working Spouse shiny Other topics 8 07-26-2005 10:38 AM
Contributing to Roth IRAs while one of couple is FIRE'd LOL! FIRE and Money 4 06-26-2005 03:04 PM
Guilty about working spouse? RockMiner Life after FIRE 34 04-24-2005 09:40 AM
Last Minute IRAs for 2004 Martha FIRE and Money 2 04-04-2005 07:06 AM

 

 
All times are GMT -6. The time now is 07:18 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.