With cash-in-hand, I would like to invest the maximum amount into a 2024 Roth IRA. That number is a little confusing to understand. On one hand, my wife and I meet the age requirement and the income requirement. She doesn't work so am I restricted to a joint Roth, or can we each have one. Is it $7000 or $8000 (I believe $8k to be the $1k makeup total).
The additional confusion comes when considering other former 401K IRA investments. Do they limit or restrict the Roth investment?
Then I just read in TurboTax that a Traditional IRA was the way to go for a specific client, not a Roth.
So, I'm looking for advice.
You'll need to sign in or create an account to connect with an expert.
There is no such thing as a joint IRA, IRAs are owned by individuals only. However, a non-working spouse may contribute to an IRA using their working spouse's wages as the basis for the contribution.
To contribute to a Roth IRA, you must have compensation from working (wages or self-employment income). Your contribution limit is $7000, or $8000 if you are over age 50, or your compensation, whichever is less. Your spouse can contribute from your compensation ($7000 or $8000) a up to the amount of your compensation minus your contribution. (For example, if you are both over age 50 but your only wages were $10,000, you could contribute $8000 to an IRA in your name but your spouse could only contribute $2000 to an IRA in her name).
Then, if your income is over a certain limit, you may be completely disallowed from making any Roth IRA contributions, that is here.
If you can't make a Roth contribution because your income is too high, you can still make a non-deductible contribution to a traditional IRA. This has certain additional complications, especially if you already own an IRA, but we can go into that if needed.
Participation in a qualified workplace plan (401k, 403b or other qualified plan) does not affect your IRA limits. Even though the plans have a similar purpose, they have different limits and are covered by different laws, so a 401k does not disqualify you from contributing to a Roth IRA as long as your income is otherwise eligible.
@VolvoGirl wrote:
Is the increase age 55 or 50? IRS pub 590-A says 50.
https://www.irs.gov/pub/irs-pdf/p590a.pdf
I originally wrote 50, didn't I? Unless someone else edited the post for me.
The IRA catchup provision is age 50 and older, the HSA catch-up provision is age 55 and older. I don't know why they are different and I do get them mixed up some times.
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
ronordj
New Member
Taxes4Fun
New Member
Jan Chabot
New Member
ericandgreta
New Member
calfred1995
New Member
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.