Is Roth-IRA available in this case...

[target2019]

Year - 2020
Married
$50,000 income - Self
$5,000 income - Spouse

Based on MAGI calculator spreadsheet at this address, it appears that both can contribute $7,000 to Roth-IRA.

https://www.investopedia.com/roth-ira-calculator-2019-contribution-limit-4771832

Wanted to confirm that with $5,000, for example, of gross income in 2020, that a full Roth-IRA contribution is ok next year for lesser-earner.

 

[gauss]

Yes - IRA (traditional and Regular) annual contribution limits for a married couple are based on combined compensation income. If you have $14,000 of compensation income between the two of you than a $7,000 contribution for each of you will be allowed.

All of this assumes that your income is below the level where deductible IRA and/or Roth IRA contributions are disallowed due to excessive income and/or retirement plans at work.

-gauss

 

[kaneohe]

sometimes called a spousal IRA https://www.nerdwallet.com/blog/investing/spousal-ira-what-it-is-and-why-you-should-open-one/

although,as the article points out, there is nothing special about that IRA and, in fact,the contribution can be made to an existing IRA. IMHO, it should be called a spousal "IRA contribution"........where spousal describes contribution and not IRA.

 

[Sunset]

Plus, the contributions to these IRA's outside of work have NO connection to a work 401K in the OP's example.

So OP could contribute the max to OP's work 401K , and $7,000 to IRA
OP's spouse can contribute $7,000 to IRA

 

[target2019]

Thanks for all of the help!