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Stupid Roth IRA Question
Old 01-09-2007, 05:19 PM   #1
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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.
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Re: Stupid Roth IRA Question
Old 01-09-2007, 05:28 PM   #2
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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
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Re: Stupid Roth IRA Question
Old 01-09-2007, 05:34 PM   #3
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Re: Stupid Roth IRA Question

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.
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