Can I Make a contribution to a Roth IRA if My Spouse and I File Separate Returns?

Under the Internal Revenue Code, a Roth IRA is a variation on the traditional individual retirement account that allows for after-tax contributions (IRC). In a few ways, it's preferable to a traditional IRA, depending on your objectives and requirements. Conversely, the IRS doesn't hand out tax breaks lightly, and Roth IRAs come with some rules and restrictions for married couples filing separately.

Main Points

Using the married filing separately status limits your ability to take advantage of a number of tax breaks, as well as your Roth IRA contributions.
If you earn too much money, you can't contribute to a Roth IRA, and married filing separately taxpayers can only contribute up to $10,000 per year.
Only married taxpayers filing separately who lived with their spouses at any point during the tax year are subject to this restriction imposed by the Internal Revenue Code.

When Married Filing Separately, Roth IRA Contribution Rules

Here are your Roth IRA contribution limits if you are married, filing separately, and spent any time during the year with your spouse:

If your modified adjusted gross income (MAGI) is zero in 2022, you can contribute up to the maximum Roth IRA contribution limit of $6,000 ($7,000 for those 50 and older).
You can contribute a lower amount if your MAGI is greater than $0 but less than $10,000.
If your MAGI is $10,000 or higher, you can't contribute to a Roth IRA.

Tip: Your MAGI is your adjusted gross income (AGI) adjusted for some claimed deductions. These deductions may differ depending on the tax break you're hoping to get. Worksheet 2-1 in Publication 590-A from the Internal Revenue Service can help you calculate yours for Roth IRA contributions. The first and third bullets are simple to figure out, but the second bullet requires a series of simple calculations using Worksheet 2-2 from the IRS' IRA contributions explainer. Let's say your MAGI is $5,000, for example. (To qualify for reduced contributions, it must be greater than $0 and less than $10,000.):

Calculate your MAGI, which is $5,000 in this case.
To get $5,000, subtract $0 from your MAGI.
To get 0.5, divide $5,000 by $10,000.
Multiply 0.5 by your IRA contribution limit for your age ($6,000 if you're under 50) to get $3,000
Deduct $3,000 from the contribution limit to get $3,000.
Subtract any IRA contributions you've made from the $6,000 total.
Your contribution will be the lesser of $3,000 (Step 5) or $6,000 minus your contributions to other IRAs.
You can contribute up to $3,000 to your Roth IRA if you haven't made any other IRA contributions.

*The lower of your IRA contribution limit or taxable compensation is used in this calculation. In this case, the IRA contribution limit was less than the taxable income. You can contribute anytime during the tax year until your tax return is due on the due date. Important: If you lived with your spouse at any point during the tax year, the limit for married filing separate taxpayers applies. So if you're filing your tax return because you and your spouse are divorced, you're exempt. In this case, you'll be treated the same as a single or head of household filer.

Why Are There Income Limits on Roth IRAs?

The government imposes limits on certain deductions, credits, and retirement contributions to keep the country running. Roth IRAs are no different. Assume that the tax code allows you to live with your spouse while filing separately under the same contribution rules as single filers. Your MAGI is $100,000 for both you and your spouse. If IRC rules weren't in place, you could each contribute $6,000 to your Roth IRAs, assuming you're both under the age of 50. An investment of $12,000 per year would provide tax-free retirement savings growth for your family, or $14,000 if both you and your spouse are 50 or older. However, because the tax code limits how much you can contribute, your combined MAGI of $200,000 disqualifies you from contributing to a Roth IRA.

Alternatives to Roth IRAs for Married Couples Filing Separate Tax Returns

There are other tax-advantaged retirement savings options besides Roth IRAs. Unless your spouse is covered by a workplace retirement plan, filing a separate married return has no effect on your ability to contribute to a traditional IRA. If you or your spouse has a work-sponsored retirement plan, you're both subject to the $10,000 MAGI limit. Traditional IRA contributions are made before taxes, so the money will be taxed when it is withdrawn. With the exception of certain circumstances, there are no tax consequences when you withdraw money from a Roth IRA because you've already paid taxes on the money you put into it.

Most commonly answered questions (FAQs)

If you're married and filing separately, how much money can you contribute to a Roth IRA each year?

If you're married and file a separate tax return, you won't be able to put in the full $6,000 (or $7,000 if you're over 50). You might be able to make a smaller contribution if your modified adjusted gross income is less than $10,000 in 2022.

Why isn't a contribution to a Roth IRA tax deductible?

Because withdrawals from a Roth IRA are tax-free, contributions are not tax deductible. You're effectively getting a tax break later in life rather than the year you make contributions, and the earnings on your contributions are also tax-free, subject to certain limitations.