Contributions to 401k, spousal (traditional) IRA, and ROTH IRA (2020 Tax Year)

scammy · ‎February 19, 2021

Hello,

I am 53 years old and contribute to a 401k at work. My wife does not work. We file married file jointly and our MAGI is less than $196,000. Here is my question.

I maximize my 401K contributions at work and contribute to my wife's IRA (traditional) in the amount of $6000 which is fully deductible as I have enough income to cover it. My understanding is that I can also contribute to my ROTH IRA in the amount of $7000.

The IRS guidance is not totally clear if I can also contribute to my ROTH IRA since I already make a full deductible contribution in the Spousal traditional IRA.

Can somebody confirm this?

Thanks in advance for your help.

MinhT1 · ‎February 19, 2021

If you file jointly and your MAGI is less than $196,000, you can make a contribution of $7,000 to a Roth-IRA if you are 50 or older.

Your wife's contribution to the spousal IRA is determined separately from your eligibility to contribute to a Roth IRA.

Please read this IRS document for more information.

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fanfare · ‎February 19, 2021

as long as your compensation (and hers, when hers is lower than yours) is over the sum of the two contributions, you are OK.

One contribution is for your spouse and one is for you.

scammy · ‎February 19, 2021

Thanks for the response. I just wanted to confirm that I can contribute to my Roth IRA Even though I contribute to a 401k and my wife’s traditional IRA.

dmertz · ‎February 19, 2021

Since your MAGI for a Roth contribution is under $196,000, as long as you have sufficient compensation (the amount in box 1 of your W-2) to support the sum of the $6,000 spousal IRA contribution and your own $7,000 Roth IRA contribution, you can can contribute to both. The fact that you participate in a workplace retirement plan has no bearing on your eligibility to contribute to a Roth IRA.

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Contributions to 401k, spousal (traditional) IRA, and ROTH IRA (2020 Tax Year)

Retirement tax questions

Retirement tax questions

Retirement tax questions

Retirement tax questions