Self-employed workers can contribute up to 20% of eligible compensation to their own account. However, this does not apply to everyone. See the deductions spreadsheet for self-employed workers in IRS Publication 560 to determine your contribution limit. The deadline for setting up the account is the deadline for paying taxes.
However, if you get an extension to file your tax return, you have until the end of the extension period to open the account or deposit contributions. The email address cannot exceed 100 characters. You have successfully subscribed to the weekly Fidelity Viewpoints email. You should start receiving the email within 7 to 10 business days.
Fidelity Brokerage Services LLC, a member of the NYSE, SIPC, 900 Salem Street, Smithfield, RI 02917.It's possible to open a traditional IRA and make non-deductible contributions, which aren't restricted by income, and then convert those assets into a Roth IRA. IRS rules impute compensation to the spouse who doesn't earn money in order to calculate their maximum contribution to the IRA by subtracting the contribution to the IRA of the earning spouse from their compensation. The so-called spousal IRA is the same as any other Roth IRA, except that it is your spouse's income that determines whether you qualify for a Roth IRA based on maximum income limits. This is due to an IRS rule that calculates your tax liability based on all your traditional IRA assets, not just the after-tax contributions to a non-deductible IRA that you specifically configured to convert it into a Roth.