Roth IRA limit if earned income is less than max contributions, but filing jointly

[chkrckwa]

We are filing jointly, and our MAGI is less than the maximum for a Roth IRA. Let's assume I'm earning $120,000, my spouse earns $4,000.

What are the limits for Roth IRA contribution in this case? For me it's $6,000 (2020 taxes), but is my spouse limited to $4,000 as the contribution must be earned income?

Or, as we are filing jointly, are both our limits at the full $6,000 each?

[DavidD66 · Accepted solution]

If your modified AGI is less than $206,000, you can both contribute $6,000 to a Roth IRA ($7,000 if 55 or older).  See Publication 590-A (2020), Contributions to Individual Retirement Arrangements (IRAs)

[dmertz]

Phase-out begins at a modified AGI of $196,000, not $206,000.  Roth IRA contributions are fully phased out at a modified AGI of $206,000.

Also, the $1,000 catch-up contribution is permitted at age 50.