Contributing to an IRA for Unemployed Husband?

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bozemaninvestor123
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Joined: Mon Feb 03, 2025 12:24 pm

Contributing to an IRA for Unemployed Husband?

Post by bozemaninvestor123 »

I work at a company that provides a 401k. My husband is unemployed. Our household MAGI is ~$250k. Can I contribute to an IRA for my husband and get a tax deduction or is it better to do a backdoor Roth IRA?
Tom_T
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Joined: Wed Aug 29, 2007 2:33 pm

Re: Contributing to an IRA for Unemployed Husband?

Post by Tom_T »

Your MAGI is well over the limit for you to get a deduction for a spousal IRA contribution. The cutoff is $146K in 2025.

It's also too high to make a Roth IRA contribution at all. The cutoff for that is $246K.
BogleTaxPro
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Joined: Sat Apr 04, 2020 6:08 pm

Re: Contributing to an IRA for Unemployed Husband?

Post by BogleTaxPro »

Agree with Tom_T. In addition, does your husband already have an IRA with previously deducted contributions (aka basis)? If so, the back door isn't a good option because part of the Roth conversion will be taxable.
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MP123
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Re: Contributing to an IRA for Unemployed Husband?

Post by MP123 »

bozemaninvestor123 wrote: Mon Feb 03, 2025 12:34 pm I work at a company that provides a 401k. My husband is unemployed. Our household MAGI is ~$250k. Can I contribute to an IRA for my husband and get a tax deduction or is it better to do a backdoor Roth IRA?
You are covered by a retirement plan at work, and since your MFJ income is over $143k (2024) you can't make a deductible contribution.

However, assuming your spouse was not covered by a retirement plan at any point in 2024 (although you were), they might be eligible to make a deductible contribution if your MFJ income is $230k or less, and phased out if over $240k. So it sounds close in your case.

https://www.irs.gov/retirement-plans/pl ... an-at-work
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