I opened my Roth IRA at Vanguard in 1998 when I was single. I married in 2000 and left my job in October 2005 to be a stay-at-home mom for a few years. I am not collecting income. Do I have to shift my Roth IRA to a spousal IRA?
Good news: You don't need to make any changes or open a new account. You can keep the money where it is, and your husband can make contributions to that account on your behalf as long as he qualifies to contribute to a Roth IRA.
You generally need earned income to contribute to a Roth IRA. If you don't work but your husband does, he can make spousal IRA contributions for you. That means he can contribute up to $4,000 this year ($5,000 if you're 50 or older) into your Roth IRA as well as his own. To make the full $4,000 contribution to either or both accounts, though, your adjusted gross income on your joint tax return for the year must be less than $150,000. The amount he can contribute decreases as income rises between $150,000 and $160,000, at which point no contributions are allowed.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
For more information about Roth IRAs, see Why You Need a Roth IRA and An IRA Owner's Manual. For help figuring out how much money you should be saving for retirement, see our calculator. And for advice on getting started, see my column on Retirement Saving Options.
Does the IRS permit essentially "grossing up" IRA contributions when purchasing front-end load funds? For example, could you invest $4,210 in a fund with a 5% front-end fee because only $4,000 would actually be invested in the IRA?
Nice try, but no. "The contribution limit is $4,000 and there are no exceptions for fees," says Ed Slott, author of Parlay Your IRA Into a Family Fortune.
-
Stocks Struggle Ahead of November Jobs Report: Stock Market TodayOracle and Broadcom continued to fall, while market participants looked ahead to Tuesday's jobs report.
-
7 Dr. Seuss Quotes Retirees Should Live ByYou're off to great places! Why Dr. Seuss is the retirement guru you didn't know you needed.
-
Fed's Rate Cuts Could Have Impacts You Might Not AnticipateUnderstanding how lower interest rates could impact your wallet can help you determine the right financial moves to make.
-
Getting Out of an RMD Penaltyretirement When your brokerage firm miscalculates your required minimum distributions, you have recourse.
-
Borrowers Get More Time to Repay 401(k) Loans
retirement If you leave your job while you have an outstanding 401(k) loan, Uncle Sam now gives you extra time to repay it -- thanks to the new tax law.
-
It’s Not Too Late to Boost Retirement Savings for 2018
retirement Some retirement accounts will accept contributions for 2018 up until the April tax deadline.
-
How to Correct a Mistake on Your RMDs from IRAsretirement If you didn't take out the correct required minimum distribution because your brokerage firm made a mistake, the IRS may show some leniency.
-
Making the Most of a Health Savings Account Once You Turn Age 65
Making Your Money Last You’ll face a stiff penalty and taxes if you tap your health savings account for non-medical expenses before the age of 65. After that, the rules change.
-
Reporting Charitable IRA Distributions on Tax Returns Can Be Confusing
IRAs Taxpayers need to be careful when reporting charitable gifts from their IRA on their tax returns, or they may end up overpaying Uncle Sam.
-
Make the Most of the New Military Retirement Plan
retirement The government is offering a new retirement option so that service members who leave the military before qualifying for a pension can still receive some benefits.
-
How Changes in Income Affect Medicare Premiums
Medicare Medicare beneficiaries can see their premiums go up if their income rises, although for some that increase will be only temporary.
