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back door IRA for foreigner spouse

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  • back door IRA for foreigner spouse

    Hello
    I work in US, high income. Have back door IRA already done for 2021

    Spouse during the year of 2021 worked in Netherlands ( has to file Dutch taxes), no US income

    in 2020, we got ,married and filed US taxes jointly- in 2020, with both US and Dutch income

    Can I do a back door IRA for spouse for 2021? He does have a Green card/permanent residency in US since 2021



    I emailed our accountant but have not heard back..

    thanks in advance

    Lucy





  • #2
    I did backdoor Roth IRA for my foreign, green-carded wife without problems the last 2 years. She did have an income but I don't think that matters. We file jointly.

    Note you can contribute to 2021 in the calendar year of 2022 up until you file your taxes, but it makes the paperwork even more of a pain in the butt.

    Comment


    • #3
      pysibal Thank you. So better get it done by end of the year then. thanks

      Comment


      • #4
        Originally posted by pysibal View Post
        I did backdoor Roth IRA for my foreign, green-carded wife without problems the last 2 years. She did have an income but I don't think that matters. We file jointly.

        Note you can contribute to 2021 in the calendar year of 2022 up until you file your taxes, but it makes the paperwork even more of a pain in the butt.
        Small clarification. You can make IRA contributions up to the 2021 tax filing deadline (04/18/22), not including extensions (10/17/22).

        Note: With the possible elimination of the Backdoor Roth and Mega Backdoor Roths in the proposed BBB. You really should make your non-deductible traditional IRA contribution and complete your Roth conversion with time to spare before 12/31/21. Personally, I would have it done by 12/15/21,

        Other than that, this is a standard spousal IRA contribution based on the other spouse's IRA compensation.

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        • #5
          Thank you for that!

          Your name should be "IRSrider."

          Comment


          • #6
            Yes. My green-card foreigner husband has been able to contribute to this. Not sure if there is any limitation to where he earned his income, as my husband has always had income in the US since we've met.

            Comment


            • #7
              Originally posted by LucyGI View Post
              Spouse during the year of 2021 worked in Netherlands ( has to file Dutch taxes), no US income
              Unfortunately also has to pay US income taxes if the Dutch income is above a certain limit ( I think 90K)

              US and a country most of us don't even know existed called Eritrea are two countries that tax on worldwide income of their citizens and permanent residents even if they are not residing in their home countries. NZ and Luxembourg tax on worldwide income if they reside there.

              Comment


              • #8
                Originally posted by pysibal View Post
                I did backdoor Roth IRA for my foreign, green-carded wife without problems the last 2 years. She did have an income but I don't think that matters. We file jointly.

                Note you can contribute to 2021 in the calendar year of 2022 up until you file your taxes, but it makes the paperwork even more of a pain in the butt.


                I did both 2021 ( before Dec) and 2022 -

                will let you know how it goes

                Comment


                • #9
                  Originally posted by LucyGI View Post



                  I did both 2021 ( before Dec) and 2022 -

                  will let you know how it goes
                  Did you contribute and covert 2021 in 2021 and made sure that there were no traditional IRA left by the end of 12/31/201?

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