Does my wife's contribution to a Simple IRA preclude or limit her/our capability of contributing to a Roth IRA?

[krpeters4]

Turbo tax indicates I am showing an excess Roth contribution due to a lack of  combined earned income.  Does my wife's contribution to a Simple IRA preclude or limit the amount that she/we can contribute to a Roth IRA?  Where do I find the compilation of our earned income on the Tax Forms?

[JaimeG · Accepted solution]

You can contribute to both a Roth IRA and a Simple IRA. What you must keep in mind are the contribution limits to both plans. 

SIMPLE IRA

The amount an employee contributes from their salary to a SIMPLE IRA cannot exceed $12,500 in 2015 - 2017.

Roth IRA

• $5,500 ($6,500 if you’re age 50 or older), or
• your taxable compensation for the year, if your compensation was less than this dollar limit
• Roth IRA contributions are also limited by your MAGI (Modified Adjusted Gross Income). Please click on the screenshot attached to view the table. You can also view this by click on the link below:
  https://www.irs.gov/retirement-plans/plan-participant-employee/amount-of-roth-ira-contributions-that...