Ira Contribution

[gman]

Is there a limit to IRA contribution if wife is eligible to participate in plan, but does not.
Husband is not in a plan.

Could they contribute 10,000 or does the fact that she is eligible mean there could be limitations..?

thanks

[Lion]

Active

Is the W-2 box checked? (Not that that is always accurate, but you do have to deal with it.) If the wife was active during 2009, including if her employer made contributions on her behalf, she is subject to limitations. She could be eligible without being active. You'll have to look up the definition in the code of active participant. Not that I'm not curious myself, but am struggling with a sinus infection and its medications and dryer broke so probably need a trip to the laundromat.

[ChEAr$]

Assuming wife is enrolled in a plan during 2009, and if employer did not contribute (and
with profits being what they are this year, it's likely employer didn't/won't), and if she did
not contribute, then she's eligible unless income otherwise limits.

[gman]

eligible

If she is eligible, income limits would not apply. ???

[ChEAr$]

You're still going to be up against the wife's W2 form and whether or not pension fund box
is checked.

Assuming it IS checked, then income limit on their joint return will apply to her contribution
to a regular IRA, but he may qualify for a spousal IRA, max 5,000.

by the way, don't use the term "they" may contribute 10,000, but rather use the term
"each may (or may not) contribute 5,000. Don't want to give false impression that there
is such a thing as a joint IRA. anyway.

So even if she may not contribute to a regular IRA due to income limits, she may qualify
to contribute her 5,000 to a ROTH IRA; still a good deal.

Your software will probably be a good guide. I know mine sure is.

Oh, and be sure to consult the TAxbook!