If it is less, your taxable compensation for the year. Your MAGI determines your eligibility to make contributions to a Roth IRA, as well as how much you can contribute. Either way, the spouse with earned income can contribute to both spouses' IRAs, provided they have enough earned income to cover both contributions.
Roth ira
contribution limits and eligibility are based on your modified adjusted gross income (MAGI), based on your filing status.If you (and your spouse, if married) are covered by an employer-sponsored retirement plan, then the traditional IRA tax deduction may be capped based on your modified adjusted gross income (MAGI), that is, your income, before subtracting the loan interest tax deduction students and other tax deductions. Instead, the money goes to a Roth IRA after you've paid taxes on it, and you can withdraw contributions at any time without taxes or penalties. If you (and your spouse, if married) are not covered by an employer-sponsored retirement plan, you can deduct your total contribution from your taxes. The saver's credit is available to individuals, heads of household, and joint taxpayers who contribute to an IRA, 401 (k) or any other qualifying retirement account, and whose adjusted gross income falls within certain parameters.
However, there are restrictions that could affect how much you can contribute and what you can deduct on your tax return. As such, you should consider your other assets, income and investments and should not rely on information as the primary basis for making purchasing or contributing decisions for insurance products or investments. If you don't have taxable compensation, but file a joint return with an income-earning spouse, you can open an IRA in your name and make contributions through a spousal IRA. Yes, a person under the age of 18 can contribute to a Roth IRA or traditional IRA as long as they meet earned income requirements and do not earn more than income limits.
If you contributed too much to your IRA, it might be a good idea to talk to a tax professional or financial advisor to establish better ways to manage your contributions.