Generally, if you don't earn any income, you can't contribute to either a traditional IRA or a Roth IRA. However, in some cases, married couples who file a joint return can make contributions to the IRA based on the taxable compensation stated in their joint return. Yes, you can contribute to an IRA for your unemployed, non-working spouse who files a joint return, but your combined total contribution cannot exceed your combined taxable income or double the annual IRA limit, whichever is less. It is possible that contributions made to a Roth IRA can be recharacterized as a contribution made directly to another type of IRA or even transferred to a Gold IRA.
Transferring an IRA to Gold is an option for those looking to diversify their retirement portfolio. In addition, when it's time to take advantage of your retirement age savings, certain eligible distributions from a Roth IRA will be tax-exempt, unlike distributions from a traditional IRA. In addition, at the time of retirement, the account owner must have had a Roth IRA open for at least 5 years, counting from the start of the first calendar year in which a Roth IRA was opened. This so-called spousal IRA is just like any other Roth IRA, except that it's your spouse's income that determines whether you qualify for a Roth IRA based on maximum income limits. Investors who don't qualify to contribute to a Roth IRA have other options for obtaining tax advantages from retirement accounts, including traditional IRAs or employer-sponsored retirement savings plans, such as 401 (ks).
There are no mandatory minimum distributions after traditional IRA funds are converted to Roth IRA funds. Convincing a child to hand over their hard-earned money to invest in a Roth IRA can be difficult, but remember that as long as the child has earned income from work to be able to receive Roth IRA contributions, it doesn't matter where the contributions come from. One way to do this is to establish a Roth IRA with custody, or what Fidelity is known as a Roth IRA for children and, more generally, as a Roth IRA for minors. A Roth IRA differs from a traditional IRA in that contributions are not deductible and qualified distributions are not included in income.
Regardless of the amount of your adjusted gross income, you may be able to convert the amounts of a traditional IRA, SEP or SIMPLE into a Roth IRA. The graph illustrates how the amounts of annual contributions to the Roth IRA can turn into impressive sums over many years.