IRA contribution limit ($6500 for 2023) - does marriage status affect this? What about spouse with no income?

If my wife and I both work but she makes way less than me (like $25k vs my $90k), does that change anything? Can she still do the full $6500 even though she makes less? And if we're both covered by 401ks at work, how does that affect the deduction part?

Your wife can still contribute the full $6,500 to her IRA regardless of her income level, as long as she has at least $6,500 in earned income for the year. The contribution limit isn't proportional to income - it's the same $6,500 limit whether someone makes $25k or $250k. Regarding 401(k) coverage, this affects the deductibility of traditional IRA contributions, not the contribution itself. Since both of you are covered by workplace retirement plans, your ability to deduct traditional IRA contributions will phase out at certain income levels. For 2023, the phase-out for married filing jointly begins at $116,000 and ends at $136,000 of modified AGI. This might make Roth IRA contributions more attractive for you if you're eligible based on income.

Does that tool handle complicated situations? I've got a rollover IRA from a previous employer, plus a Roth, and now I'm self-employed with an SEP IRA. Not sure if I'm maximizing everything correctly or if I'm missing deductions somewhere.

I'm skeptical about tax tools that claim to do everything. How accurate is it with the new tax laws? And does it explain the reasoning behind its recommendations or just give you numbers without context?

It absolutely handles complicated situations with multiple retirement accounts. The tool specifically analyzes all your retirement vehicles together - the rollover IRA, Roth, and SEP IRA would all be factored in. It identifies contribution limits across accounts and shows optimization opportunities most people miss. The accuracy is impressive - they update the system with every tax law change. What I found most helpful was the detailed explanations behind each recommendation. For example, it explained exactly why contributing X amount to my SEP before putting money in my Roth would maximize my tax advantages, and showed the specific tax code references. It's not just numbers - it walks you through the reasoning.

Wait, so how does this Claimyr thing actually work? The IRS phone lines are always busy whenever I call. Does this somehow put you at the front of the line or something? Seems too good to be true.

Yeah right. There's no way to "skip the line" with the IRS. They're notoriously understaffed and overwhelmed. I've been trying to resolve an issue for months, and I doubt some service could magically get me through when the IRS themselves tell everyone they're backed up.

It doesn't "skip the line" in the way you might think. What Claimyr does is automate the calling process. It calls the IRS repeatedly using their system until it gets through, then it calls you to connect. It's like having someone redial for you constantly until there's an opening, which can take hours, but you don't have to do it yourself. The IRS is definitely understaffed, but their phone system does occasionally have openings - the problem is the randomness of when those happen. I was skeptical too until I tried it. I got a real IRS representative who answered all my specific questions about IRA contribution limits for married couples with disparate incomes. They even noted something specific to my tax situation that I hadn't considered.

I'm turning 50 in November 2023. Can I make the catch-up contribution for the whole year, or just for the months after my birthday?

You can make the full catch-up contribution of $1,000 for the entire 2023 tax year! The IRS bases eligibility on whether you're 50 or older at any point during the calendar year. So even though you're turning 50 in November, you qualify for the full $7,500 contribution limit for 2023. This is actually a nice little bonus for people in your situation - you effectively get to make "catch-up" contributions for the months before you turn 50.

I used TurboTax last year in this exact situation (I worked, husband didn't). It actually walked me through the spousal IRA contribution pretty well. There's a specific section about retirement contributions, and it asked if my spouse had any earned income. When I entered zero, it explained the spousal IRA rules and confirmed we could still contribute up to the full amount for him. The key is making sure you indicate that you're filing jointly - that's what enables the spousal IRA option.

Thanks for explaining that! I think I must have missed something in the questionnaire because it never gave me that option clearly. I'll look specifically for the retirement contributions section this year and make sure we're filing jointly (which we are). Really appreciate the tip about where to find it.