On Apr 10, 8:20 am, joetaxpayer <joetaxpa...@[EMAIL PROTECTED]
> wrote:
> HW "Skip" Weldon wrote:
> > Over-50 person has $5000 gross income from part-time teaching.
> > Because part-timers are eligible for state 401k plan, he contributed
> > $1500 to 401k.
>
> > What is the max he can contribute to Roth - $5000 or $3500?
>
> > -HW "Skip" Weldon
> > Columbia, SC
>
> Sounds like $3500 to me.http://www.fairmark.com/rothira/iracomp.htm
> very bottom, explains it: "To make things easy, the IRS says you can
> generally treat any item as compensation income if it's included in the
> box of Form W-2 labeled "Wages, tips, other compensation." >
> Joe
>
I read it the same way. I have a different slant on this question.
My wife is currently contributing most of her salary to a state
employee retirement plan and 457 plan (her annual salary is less than
$15,500). Her "take home" pay is approximately $80/month, before
taxes. She also contributed $5,000 to a Roth IRA. I believe this is
OK as long as my taxable income would cover the difference (i.e., a
spousal IRA). Do you agree with my interpretation?
Steve
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