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Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 15185
Experience:  15years with H & R Block. Divisional leader, Instructor
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Hi, im 72 yrs and my spouse is 50 yrs old. Last year I took

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Hi, i'm 72 yrs and my spouse is 50 yrs old. Last year I took my first MRD from my IRA.
I'm still working and making about $ 30K this year, my wife has no income .
Q1.Can I still contribute to a 401K from my employer? if so how much?
Q2. Can we contribute $ 5K to my wife's IRA this year?
Thanks so much.
Piet

Robin D. :

Hello and thanks for trusting me to help you today. I am a tax adviser with over 15 years of experience.


The elective deferral (contribution) limit for employees who participate in 401(k) is $17,500. So that is your limit.
There is no limit for contributions as long as you are working so your age is not a factor.

Robin D. :

You can continue to make contributions, as long as the plan allows.

Robin D. :

As far as contributing to a spousal IRA that depends on your wife's age. If she is 70 1/2 no contributions would be allowed for her.

Robin D. :

You can’t make regular contributions to a traditional IRA in the year you reach 70½ and older. However, you can still contribute to a Roth IRA and make rollover contributions to a Roth or traditional IRA regardless of your age.

Robin D. :

If her IRA ia a ROTH then yes but not if it is a Traditional and she is 70 1/2 or over.

Robin D. :

As she is 50 then contributions would be allowed.

Robin D. :

As long as your income is $95,000 or less you should receive a full deduction for the IRA contribution made for your wife, even if you are covered by retirement at work.

Robin D. :

To summarize : Yes to all of your questions.

Robin D. :

My goal is to give you excellent service. If you are satisfied, please rate me. If you have follow-up questions on this same topic, use the reply box below. To start a new conversation with me on a new topic request me again.

Robin D. :

Did you need to ask any more questions on this subject?

Robin D. :

I can switch to Regular Q&A if you are not able to respond here but then we will not be able to CHAT in real time.

Robin D. and other Tax Specialists are ready to help you
Hi,
Here is a copy of my complete answer to you just in case you really could not view in CHAT:

Robin D. : Hello and thanks for trusting me to help you today. I am a tax adviser with over 15 years of experience.
The elective deferral (contribution) limit for employees who participate in 401(k) is $17,500. So that is your limit.
There is no limit for contributions as long as you are working so your age is not a factor.
Robin D. : You can continue to make contributions, as long as the plan allows.
Robin D. : As far as contributing to a spousal IRA that depends on your wife's age. If she is 70 1/2 no contributions would be allowed for her.
Robin D. : You can’t make regular contributions to a traditional IRA in the year you reach 70½ and older. However, you can still contribute to a Roth IRA and make rollover contributions to a Roth or traditional IRA regardless of your age.
Robin D. : If her IRA ia a ROTH then yes but not if it is a Traditional and she is 70 1/2 or over.
Robin D. : As she is 50 then contributions would be allowed.
Robin D. : As long as your income is $95,000 or less you should receive a full deduction for the IRA contribution made for your wife, even if you are covered by retirement at work.
Robin D. : To summarize : Yes to all of your questions.
Robin D. : My goal is to give you excellent service. If you are satisfied, please rate me. If you have follow-up questions on this same topic, use the reply box below. To start a new conversation with me on a new topic request me again.
Robin D. : Did you need to ask any more questions on this subject?
Robin D. : I can switch to Regular Q&A if you are not able to respond here but then we will not be able to CHAT in real time.
Robin D. : CustomerIN CHAT is what I am seeing so I am going to change to Q&A so perhaps you will be better able to respond.