southernerdocParticipantStatus: PhysicianPosts: 32Joined: 03/10/2019
For some reason, I have never set up a spousal IRA for my wife. She’s a stay-at-home mom who is not on my payroll (I’m still a sole proprietor, non-incorporated).
I’m assuming this is legal, but wanted to make sure… I can set up a spousal IRA (which I understand is just a standard IRA), make the max contribution, and then perform a backdoor Roth conversion? Is there anything special that needs to be filed with the IRS for this other than Form 8606?March 11, 2019 at 10:03 am MST #197526jfoxcpacfpModeratorStatus: Financial Advisor, Accountant, Small Business OwnerPosts: 7315Joined: 01/09/2016
Yes, this is legal, as long as your earned income is =or> the total of both IRA contributions. You can contribute $5,500 for her for 2018 (until 4/15/19) and $6,000 for 2019.
File Form 8606 and make sure your tax software d/n count the conversion as taxable. There is a lot of discussion on the forum about how to fill in the blanks correctly. You will not be reporting the conversions until you file your 2019 income tax return.
Johanna Fox Turner, CPA, CFP, Fox Wealth Mgmt & Fox CPAs ~ 270-247-0555
https://fox-cpas.com/for-doctors-only/PedsParticipantStatus: PhysicianPosts: 3604Joined: 01/08/2016Is there anything special that needs to be filed with the IRS for this other than Form 8606?Click to expand…
nope. whats yours is hers etc.
assuming MFJ.CraigyParticipantStatus: SpousePosts: 1863Joined: 09/16/2016March 11, 2019 at 1:16 pm MST #197612LordosisParticipantStatus: PhysicianPosts: 793Joined: 02/11/2019
Is there anything special that needs to be filedClick to expand…
A nice night out with her from time to time so she does not run away with the 6K once it is put into her name. 😛
“Never let your sense of morals prevent you from doing what is right.”southernerdocParticipantStatus: PhysicianPosts: 32Joined: 03/10/2019
I normally file my taxes in October (file an extension). Must I open the IRA before April 15 or am I allow the time for extensions?March 14, 2019 at 6:19 am MST #198357