Max contribution to Roth

Sounds like $3500 to me.

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." There's one exception: any portion of "Wages, tips, other compensation" that's also reflected in the box labeled "Nonqualified plans" doesn't count as "compensation income" for this purpose." Joe

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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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Well, if wife can contribute $5000 based on hubby's earnings, as spouse, it would be pretty bad if her earning say $1000, caused then to have her $5000 disallowed, right? I think she can still deposit the $5000, but stranger things exist within the tax code.

Joe

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