Contributions to an IRA

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Topic Author
HTownCowboy
Posts: 12
Joined: Wed Jul 25, 2012 10:58 am

Contributions to an IRA

Post by HTownCowboy »

My wife and I want to contribute to our 2012 IRAs. I know we have until April 15 to do this, so we are currently shaking our pockets for loose change to send in. Our situation for 2012 differed from in the past however. My wife did not work at all this past year as she was a stay-at-home mom with our new baby. Her normal Roth IRA contribution can't be made since she had no earned income correct? I believe we can still contribute to a traditional spousal IRA for her, and based on our income, get a deduction for the full amount. Is this accurate?

For myself, I changed jobs mid-year - going from a job where I was contributing to my 401K to one where I have to wait until 2013 to start my 401K contributions. For myself, am I allowed to make a deductible contribution (partial or whole, depending on our AGI) to my IRA? I read something about being covered by an employer plan impacting my ability to make a deductible contribution. Would I be considered covered in this case?

Thanks for any help. I can try to provide more specifics if needed.
Alan S.
Posts: 12669
Joined: Mon May 16, 2011 6:07 pm
Location: Prescott, AZ

Re: Contributions to an IRA

Post by Alan S. »

A spousal IRA contribution can be either a TIRA or a Roth contribution. It's not limited to a TIRA contribution.

You are considered covered by an employer plan for 2012, even if it was for only a single day. Without knowing your modified AGI for 2012, your contribution options remain unknown. If you have an idea of what your MAGI will be, we can list both your IRA contribution options.
Topic Author
HTownCowboy
Posts: 12
Joined: Wed Jul 25, 2012 10:58 am

Re: Contributions to an IRA

Post by HTownCowboy »

Sorry for the delay in responding Alan. Thanks for answering my IRA question!

As for our MAGI, it should fall in the range of $95,000-100,000.
User avatar
Toons
Posts: 14467
Joined: Fri Nov 21, 2008 9:20 am
Location: Hills of Tennessee

Re: Contributions to an IRA

Post by Toons »

FYI :happy

"For married couples filing jointly and where the spouse contributing to the traditional IRA is covered by an employer-based retirement plan: $92,000 to $112,000. For a spouse not covered by a group plan, the deduction is phased out on income between $173,000 to $183,000."

http://taxes.about.com/b/2011/10/25/ira ... r-2012.htm


Look at Proportionate Reduction in link

http://fairmark.com/rothira/phaseout.htm
"One does not accumulate but eliminate. It is not daily increase but daily decrease. The height of cultivation always runs to simplicity" –Bruce Lee
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