ROTH IRA for my wife who has AOS pending

[D Dub718 2]

Hello all,

 

I would like to sign my wife up for a spousal Roth IRA as I am the only one who works. She has a pending AOS application and we are waiting for the interview to be scheduled. She has not received her EAD or her travel permit but she has received a little bit of cash from my family and I thought it would be wise to invest it. She agreed. We are planning to open an account under Vanguard and under citizenship, file as a resident alien. She doesn't have her GC but according to my research, she has passed the substantial presence test and thus qualifies to be classified as a resident alien. Does anyone know if signing up for a Roth IRA will hurt her during the AOS interview and possibly the citizenship interview down the line? She's not allowed to work currently but will generating cash via Roth IRA be an issue?  The primary purpose of the account is for growth and for retirement so we won't be taking money out as income. Thank you.

[Crazy Cat 41,855]

I would consult a competent accountant for this question.

[Kürbis&Tannenbaum 21]

On 1/1/2020 at 6:29 PM, D Dub718 said:

Does anyone know if signing up for a Roth IRA will hurt her during the AOS interview and possibly the citizenship interview down the line? She's not allowed to work currently but will generating cash via Roth IRA be an issue?

IRA's can only be contributed to with earned income, e.g. your spouse expects to receive a 1099, W2. If she has/will have earned income, either in her foreign country or the USA, you can contribute to an IRA.

 

That being said I think there is an exception for stay at home spouses at least for "normal" US citizen spouses. Look into that, see if it applies to prospective GC holders as well.

 

My advice? Skip the hassle of research, just open an IRA for your spouse when she gets the EAD and gets a job. Since you already applied, she will have it in ~6 months, but definitely before April 15th of 2021 which is the 2020 IRA contribution deadline.

[Raquel Sanchez 0]

Does your wife have a SSN? Brokerage companies will not let you open an account for her without it. If yes, your spouse can contribute to Roth or Traditional  IRA as long as you have earned income like wages or self-employment income. I am US Tax Professional by the way.