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janetcamus · Sep 5, 2010, 11:59 AM

I am married and unemployed. We will be filing jointly on our tax returns. Can I still contribute the maximum to my IRA even though unemployed?

wnhough · Sep 5, 2010, 09:15 PM

QUOTE," We will be filing jointly on our tax returns. Can I still contribute the maximum to my IRA even though unemployed? "---Technically yes. But it depends on your spouse's taxable compensation amount. Compensation means earned incoem,i.e. reg. wages, fees, commissions, or alimony etc. For example, neither of you was age 50 by the end of 2010. For the year, assume that your spouse has taxable compensation of $30,000. Then he can contribute (and deduct) $5,000 to a traditional IRA. As he and you file a joint return, each can contribute $5,000 to a traditional IRA. This is because you, who has no compensation, can add your spouse compensation, reduced by the amount of his own IRA contribution, ($30,000 – $5,000 = $25,000) to your own compensation (-0-) to figure your maximum contribution to a traditional IRA. In your case, $5,000 is your contribution limit, because $5,000 is less than $25,000 (his compensation for purposes of figuring your contribution limit).
For both 2009 and 2010, a taxpayercan (maximumly)currently contribute up to $5,000 or 100% of your taxable compensation for the year, whichever is less unless non of you reaches age 50.
For further IRA related info, visit the web site:http://www.irs.gov/publications/p590...link1000230412

MukatA · Sep 6, 2010, 06:15 AM

Yes, on the joint return you can contribute to IRA if your spouse has compensation income.