golfsd
Apr 26 2000, 03:09 PM
I understand the maximum contribution is $2000 or up to the earnings for a given year.
How about non-working spouses? Do they get
to contribute $2000 even though they had no
earnings?
Michael Devault
Apr 26 2000, 05:54 PM
Sure do! IRS Pub 590 says, "If you file a joint return and your taxable compensation is less than that of your spouse, the most that can be contributed for the year to your IRA is the smaller of the following two amounts:
1. $2,000, or
2. The total compensation includable in the gross income of both you and your spouse for the year, reduced by the following two amounts:
a. your spouse's IRA contribution for the year.
b. Any contributions for the year to a Roth IRA on behalf of your spouse.
This means that the total combined contributions that can be made for the year to your IRA and your spouse's IRA can be as much as $4,000."
Hope this helps!