Your Money: Husbands, Wives and IRA Contributions Howard Hook, CFP®, CPA, quoted in The Star Ledger/NJ.com on April 7, 2014 Question: My husband and I are both retired and collecting Social Security, a pension and he is getting his annual required minimum distribution from his IRA. Last year I had a part-time job earning $10,000. I funded a Roth IRA for myself in the amount of $6,500 as I am over 50. Am I eligible to fund a Roth IRA in the amount of $3,500 for my husband? Obviously, time is of the essence as I believe I must fund by April 1 of this year. ~~ Saving still Answer: It’s never too late to save — unless you’re talking IRS deadlines. You have until April 15, not April 1 as you said, to fund an IRA for 2013. The eligibility rules for funding a Roth are similar to that of a nondeductible IRA, said Howard Hook, a certified financial planner and certified public accountant with EKS Associates in Princeton. But there are two exceptions, he said. The first exception is that certain taxpayers with modified AGI above a certain amount may not contribute to a Roth, but there is no income limit for a nondeductible IRA, Hook said. “The other exception is that there is no age limit for making a Roth contribution, while there is an age limit of 70½ for a nondeductible IRA,” he said. Both the Roth IRA and nondeductible IRA allow for a contribution to be made for both spouses even if only one spouse has earnings, Hook said. It seems from your information that your husband is over age 70½, so the only contribution you could make is to a Roth, assuming your modified adjusted gross income less than $188,000, he said. “If that is the case, you could make total Roth contributions of $10,000 — $6,500 for yourself and $3,500 for him,” Hook said. To make the contribution for a Roth, you need qualifying taxable compensation, said Michael Maye, a certified financial planner and certified public accountant with MJM Financial in Berkeley Heights. That includes wages, salaries, tips, professional fees, bonuses and other amounts received for providing personal services. He said it also includes commissions, self-employment income, nontaxable combat pay, military differential pay, and taxable alimony and separate maintenance payments. He agrees that given that your taxable compensation was $10,000 and you contributed $6,500 to your Roth, your husband’s Roth could be funded with $3,500. So this is the week to do it, with April 15 creeping closer and closer.