I work and my wife does not.
Can we open a traditional IRA for her, fund it with after tax money, and then immediately convert to Roth?
I know for a single person without earned income this is not allowed. Not sure about a married couple though.
She currently doesn't have any IRA or 401k accounts.
Thanks
Roth IRA conversion for non-working spouse
byu/Ok-Yam-6616 intax
Posted by Ok-Yam-6616
4 Comments
If you are in a community property state yes. If you aren’t, then you can’t.
Of course, then you can always declare $7,500 of extra earned income in her name, pay the se tax, then contribute. But this is generally a bad idea.
Do you earn more than 252k? If so, this plan is fine. If not, just fund her Roth directly.
Hello,
You can open an account and fund it however, yiu cannot take a tax deduction if she doesn’t have any income.
Yes, you can contribute to an IRA for a non-working spouse, using the working spouse’s earnings– assuming you file a joint return. The question is, is your combined AGI over the limit for just making Roth contributions without having to use the backdoor strategy?