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Retirement tax questions
That's odd since I see that no where on the IRS.GOV website instead this is what is said:
"I want to set up an IRA for my spouse. How much can I contribute?
If you file a joint return and have taxable compensation, you and your spouse can both contribute to your own separate IRAs. Your total contributions to both your IRA and your spouse's IRA may not exceed your joint taxable income or the annual contribution limit on IRAs times two, whichever is less. It doesn't matter which spouse earned the income." And further it says:
"Spousal IRAs
If you file a joint return, you may be able to contribute to an IRA even if you didn’t have taxable compensation as long as your spouse did. Each spouse can make a contribution up to the current limit; however, the total of your combined contributions can’t be more than the taxable compensation reported on your joint return. See the Kay Bailey Hutchison Spousal IRA Limit in Publication 590-A.
If neither spouse participated in a retirement plan at work, all of your contributions will be deductible.
If you note it doesn't even use the term "earned income" but instead uses "taxable income" which as you surely know includes much more than wages which would certainly give me easily $8000 in my own right.
I would like to know where you got this info on the lesser earner is the one to receive the contribution when the IRS states plainly that it doesn't matter who has the taxable income as long as it doesn't go over joint taxable income.