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Question for the Money Doctors

Question submitted on Mar 20, 2013.

Question

I am age 64 and my wife is 58 and we want to put $8000.00 into our IRA annunity to reduce our 2012 income tax payment. The annunity is in my name and I will be putting in $6000.00 and she will be putting in $2000.00 Our return is filed as married filing jointly. The beneficary on the IRA annunity is my wife. Can we do this or do we need to set up a seperate IRA in her name in a seperate acccount. Please advise. Rod

Answer

You will need to setup a separate IRA in your wife's name for her contribution. If you contributed $8,000 to it, you would be making a $2,000 excess contribution.


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