Stupid Roth IRA Question

2B · 01-09-2007, 04:19 PM

This is embarassing to ask but I think I'm right and Etrade is telling me I'm wrong. The cost of me being right and them wrong is tax trouble.

My over-50 wife "retired" when we moved across town. She has only made about $3,000 in 2006 when we moved and she quit working. That is her total earned income for 2006.

I made a $5,000 contribution to her Roth IRA in January 2006 because I didn't think we'd move as soon as we did.

My income is safely above $50,000 which the Etrade reps say qualifies for my spouse to also have a $5,000 2006 Roth IRA contribution. I was under the opinion that you may only contribute up to your earned income.

I would like to use the vast unpaid resources of this forum for a difinitive answer to shut me up or give me strength to fight on.

**Martha** · 01-09-2007, 04:28 PM

You're lucky because E*trade is right.

Here is a great article with the rules regarding spousal IRAs, specifically Roths: http://www.fairmark.com/rothira/contrib.htm

2B · 01-09-2007, 04:34 PM

Quote:

Originally Posted by Martha

You're lucky because E*trade is right.

Here is a great article with the rules regarding spousal IRAs, specifically Roths: http://www.fairmark.com/rothira/contrib.htm

Thank you Martha.

When stupid or just plain wrong, it's always best to have it financially beneficial.

01-09-2007, 04:19 PM	#1
2B Thinks s/he gets paid by the post Join Date: Mar 2006 Location: Houston Posts: 2,155	Stupid Roth IRA Question This is embarassing to ask but I think I'm right and Etrade is telling me I'm wrong. The cost of me being right and them wrong is tax trouble. My over-50 wife "retired" when we moved across town. She has only made about $3,000 in 2006 when we moved and she quit working. That is her total earned income for 2006. I made a $5,000 contribution to her Roth IRA in January 2006 because I didn't think we'd move as soon as we did. My income is safely above $50,000 which the Etrade reps say qualifies for my spouse to also have a $5,000 2006 Roth IRA contribution. I was under the opinion that you may only contribute up to your earned income. I would like to use the vast unpaid resources of this forum for a difinitive answer to shut me up or give me strength to fight on. __________________ The object of life is not to be on the side of the majority, but to escape finding oneself in the ranks of the insane -- Marcus Aurelius

01-09-2007, 04:28 PM	#2
Martha Moderator Join Date: Feb 2004 Location: minnesota Posts: 9,370	Re: Stupid Roth IRA Question You're lucky because E*trade is right. Here is a great article with the rules regarding spousal IRAs, specifically Roths: http://www.fairmark.com/rothira/contrib.htm __________________ . Do not rely on the information provided--my posts are not to be taken as legal advice. Needless to say you must consult with your legal representative. I am not responsible for errors. If I offended you with cya I apologize. If I did not, I tried.

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