southernerdocParticipantStatus: PhysicianPosts: 69Joined: 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: 7943Joined: 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.PedsParticipantStatus: PhysicianPosts: 4198Joined: 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: 2012Joined: 09/16/2016March 11, 2019 at 1:16 pm MST #197612LordosisParticipantStatus: PhysicianPosts: 1604Joined: 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: 69Joined: 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