Dear Hank – My wife is a stay at home mom. With a traditional IRA she is eligible for the “spousal IRA.” Can she open a Roth IRA as her spousal IRA, meaning I can invest $8,000 of my income, with half of that in her name? – Peter from Mississippi
Hey Peter – Good news – As long as one spouse has at least $8,000 of earned income, and your joint MAGI is under $160,000 (as you’ll reach your phase-out for ROTH in 2007) both spouses can contribute $4,000 ($8,000 total) to their respective Roth IRAs. Each spouse can contribute an additional $1,000 if he or she is age 50 or older by the end of 2007. So tap it out if you can! Thanks for the post!
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