Roth IRA question(s)

[SHRED]

My wife is 47 and I am 50. I worked last year. She did not work but has taxable income from some stock that she sold.
She would like to contribute $4000 to a Roth IRA for 2006.
I will not be contributing to an IRA but did contribute to a 457 with my employer.
Can she contribute to a ROTH IRA even though she did not work last year?
We will file a joint income tax return for 2006 and our income is in the range that allows for a roth ira contribution.
Is it ok for her to contribute and me not to when I am the only one working?

[A HERETIC I AM]

1. She can not contribute to a Roth if she did not earn wages

however you can contribute for her AND you for a total of $8000 for 2006. (Almost postive it is 8 grand...crappy connection here at home or i would be able to get the exact figure for you. I lose my connection every 1/2 hour! It is certainly more than four thousand. It is either $6 or $8,000. Sorry i am not able to confirm it tonight)

Check out the IRS website. It is actually pretty informative it just takes a little patience.

www.irs.gov

type "Roth IRA" into the search engine and it will give you the pertinent publications.

[SHRED]

7. So just to be clear

She cannot contribute due to the fact she is not working, but I contribute can for her?
How does that work?

Just curious: How does the financial institution, where you open the IRA, know if you are working or not?

[scruffy]

2. Maximum contributions for IRAs . . . .

$4000 if under age 50; $5000 if 50 or above. As long as one of you has earned income (from wages, not from sale of stock), you can each contribute to an IRA.

[A HERETIC I AM]

3. Post deleted.....

[A HERETIC I AM]

4. Here it is...from the IRS website....sorry about the wrong info...

http://www.irs.gov/publications/p590/ch02.html#d0e8836

<snip>Can You Contribute to a Roth IRA?

Generally, you can contribute to a Roth IRA if you have taxable compensation (defined later) and your modified AGI (defined later) is less than: (emphasis mine)

*

$160,000 for married filing jointly or qualifying widow(er),
*

$10,000 for married filing separately and you lived with your spouse at any time during the year, and
*

$110,000 for single, head of household, or married filing separately and you did not live with your spouse at any time during the year.

<snip>

much more on that page.

Giving wrong answers can and often is just as bad as giving bad answers! My apologies.

[scruffy]

5. You saw the answer in your link, right? . . .

The most she can do is $4000 because she is under 50. The most he can do is $5000 because he is over 50. They don't get to do any extra because of filing jointly.

[A HERETIC I AM]

6. You're right, you're right.....

Sorry....got it wrong.