Can H1B visa holder contribute for Spousal Traditional IRA for wife on H4 visa without EAD?

[monikagoel]

Can H1b visa holder contribute to a Spousal Traditional IRA in the name of their non-working spouse on H4 visa without EAD and SSN (but have ITIN)? If answer is YES, my next query is that does similar Traditional IRA deduction limits and income limits apply for contribution to Spousal Traditional IRA OR Spousal Tradition IRA can have whole $7000 (e.g. Tax Year 2024) as deduction from the income without any income limitation (as in case of Traditional IRA when beneficiary does not have retirement plan like 401K from employer and can contribute entire $7000 into Traditional IRA without income limitation)?

 

[monikagoel]

e.g. If we are filing as MFJ and our MAGI is 170K . Earning Spouse on H1B Visa has 401K from employer and non working Spouse on H4 (without EAD) obviously does not have any income/401K account. 

Question is for 2024 Tax filing-->

1. How much earning spouse can contribute to Traditional IRA with the benefit of tax deduction.

2. How much non-earning spouse can contribute (through earning spouse with Spousal Traditional IRA account) to Traditional IRA with the benefit of tax deduction.

[DaveF1006]

 It depends. The income limit to contribute to an IRA for a married filing jointly couple is $143,000, if there is a retirement plan offered at work. You can view that here. There is no limit if your employer has not offered you a retirement plan at work. 

If you file jointly, each of you may contribute up to $7000 if under age 50 and $8000 if 50 or over. if you file separate returns, your wife will not be eligible to contribute.

IRS Contribution Limits

@monikagoel