IRA How Much Can I invest ? Female age 56 filing jointly w Husband

[wrjerden]

HI.  I am a married female age 56 income approx $40K.  My husband age 70.5 is retired Soc Sec $18K.

Trying to figure out how much I am allowed to put into my existing IRA for some tax relief ?

Thank you 🙂

Grace

[DoninGA]

Since you are age 50 or older you can contribute up to $7,500 to an IRA in 2023.

Go to this IRS website for IRA contribution information - https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-ira-contribution-li...

[Opus 17]

First, you must have compensation. This is generally taxable income earned from working a W-2 job or a schedule C self-employment job, although there are one or two odd exceptions.  You say you had $40 K of taxable income, but you didn’t say whether it was compensation from working.

Then, your IRA contribution limit is $7500 or your compensation from working, which ever is less.

Even though your spouse is retired and does not have compensation from working, your spouse may use the spousal IRA rule and make a contribution to their IRA by relying on your compensation. In that case, the maximum contribution for your spouse is also $7500, but the total IRA contributions for yourself and your spouse can’t be more than your compensation from working. The age limit for IRA contributions was removed a couple of years ago. Now the only requirement is that the taxpayer or their spouse must have compensation.

[wrjerden]

Ok . Thanks so much.  

So we can both contribute 7500 for 2023 with my 40K earned income. He has only 18K social security

Thank You  !!

Grace