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The rules about the Roth
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August 21, 2000: 12:00 p.m. ET
There are income limits if you and your spouse want to open a Roth IRA
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NEW YORK (CNNfn) - You know you should open an IRA, but figuring out the rules can be complicated.
In response to a reader's question, Frank Armstrong, a certified financial planner and president of Managed Account Services in Miami, explains the basics about a spousal IRA and a Roth IRA.
Ask the experts a question.
Can my wife and I open an IRA together? And can you explain the income limits of the Roth IRA?
Joint IRAs are not allowed. But, if you fall within the income limits you can each open up an IRA even if only one of you works.
Whether you use a Roth or Traditional IRA, the spousal IRA is a great way to provide extra security for your wife and retirement income for the family.
As far as the Roth IRA, you must have earned income at least as much as your contribution. In order to make the full $2000 contribution you must have AGI not to exceed:
- Single - $95,000 or
- Married filing joint return - $150,000
- Married filing separately - $0
There are phase outs allowing partial contributions to the following limit
- Single - $110,000 or
- Married filing joint return - $160,000
- Married filing separately - $10,000
If you wish to convert from a traditional IRA to a Roth the following limits apply:
- Single or Married filing joint return - $100,000
- Married filing separately - not allowed
You need not include any income recognized by the conversion to determine eligibility to make the conversion. 
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