Generally, IRA contributions can be made only if you have earned income. However, a non-working spouse can make an IRA contribution if the other spouse works. Such a spouse is eligible to contribute up to $3,000 to an IRA for 2003 (and for 2002, too, up to April 15, 2003). An extra $500 can be contributed by people age 50 or older.
What’s more, the non-working spouse’s contribution may be deductible, even if the working spouse is covered by an employer’s retirement plan. To get a full IRA deduction in this circumstance, the couple must have a joint adjusted gross income (AGI) of under $150,000. Partial deductions are permitted, up to $160,000 in AGI.
