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Spousal Non-Deductible IRA -> Backdoor Roth

Home Retirement Accounts Spousal Non-Deductible IRA -> Backdoor Roth

  • Avatar southernerdoc 
    Participant
    Status: Physician
    Posts: 69
    Joined: 03/10/2019
    alpha investing

    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?

    #197526 Reply
    jfoxcpacfp jfoxcpacfp 
    Moderator
    Status: Financial Advisor, Accountant, Small Business Owner
    Posts: 7943
    Joined: 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 ~
    http://www.fox-cpas.com/for-doctors-only ~ [email protected]

    #197537 Reply
    Liked by Craigy, Peds
    Avatar Peds 
    Participant
    Status: Physician
    Posts: 4198
    Joined: 01/08/2016
    Is 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.

    #197543 Reply
    Liked by Craigy
    Craigy Craigy 
    Participant
    Status: Spouse
    Posts: 2012
    Joined: 09/16/2016
    Splash Refinancing Bonus

    You’ll have two 8606s.

    LEVEL 1 WCI FORUM MEMBER.

    #197612 Reply
    Lordosis Lordosis 
    Participant
    Status: Physician
    Posts: 1604
    Joined: 02/11/2019

    Is there anything special that needs to be filed

    Click 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.”

    #197623 Reply
    Liked by DCdoc
    Avatar southernerdoc 
    Participant
    Status: Physician
    Posts: 69
    Joined: 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?

    #198357 Reply
    Avatar Peds 
    Participant
    Status: Physician
    Posts: 4198
    Joined: 01/08/2016

    April.

    #198373 Reply

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