Speaker 1 (00:12):

Good morning. My name is Chad Taylor, managing partner with MDT Financial Advisors here in Houston, Texas. Today is April the first, 2024 and I was asked a wonderful question over the weekend that I thought other people might have the same question. So I thought I'd do a real quick video on it. And the question was, I work and I have access to a 401k is my spouse who doesn't work outside the home and doesn't have access to a 401k or a retirement plan at work. Can they do a Roth IRA contribution? And the answer is maybe, so IRA contributions Roth or traditional. Remember therefore you can make those contributions if you have earned income like income from a work or something along those lines. Earned income does not include pensions or taking income from your assets. So it is for people that have earned income from work.

Speaker 1 (01:17):

So when you start talking about spousal contributions, whether it's Roth or traditional IRAs, there's certain income limits that matter when it comes to that. So let's just say one spouse that works outside the home, the other spouse doesn't. And if the spouse that works outside the home has access to a retirement plan at work and makes more than $240,000 a year, you cannot do a Roth IRA contribution for the spouse that doesn't work outside the home. Okay? Nor can you do one for yourself because you have access to a retirement plan at work and you quote unquote make too much money to do that. So again, if you work outside the home, you have access to a retirement plan. If your spouse does not and you make more than $240,000 a year as a family, you cannot contribute to a Roth IRA. And as we always remind you when it comes to stuff like this as far as deductibility or Roth I a contributions or traditional IRA contributions when it comes to things with your taxes, always verify with your accountant or your CPA that it works in your situation. Great. If you have any questions about Roth IRA contributions or anything else, please don't hesitate to reach out and let us know. Hope you have a great day. Thank you.