Contribute to SEP IRA for nonworking spouse?

[Creflo]

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My wife does not work, gets no W2. She can contribute to her own IRA with my income as we are married filing jointly. If I set up a SEP IRA through my practice, can the practice contribute to a SEP IRA for her, if she still does not work or get a W2?

 

[southerndoc]

No, but you can do a "spousal IRA" which is basically a traditional IRA. You can then do a backdoor conversion to a Roth IRA.

 

[TMP-SMX]

As above no you can't do that. I'd also advise against utilizing a SEP/SIMPLE IRA unless unavoidable (sounds like it in your case). It precludes usage of backdoor Roth IRA (pro rata taxation on that conversion). If you have some control over HR and business owners suggest switching to a 401k type system if possible. If you can't switch your own retirement plan yes you certainly can do a backdoor Roth spousal IRA for your spouse each year and not have to worry about pro rata for your spouse at least.

 

[dpmd]

I recommend solo 401k instead or sep ira. As for your wife it depends on if you can claim she has an active role in your business. Then you can assign part of business revenue to her and she can contribute to solo 401k.