Who can not contribute to an ira?

If your earnings from work are too high, you can't contribute at all. For a self-employed person or a partner or member of a transfer business, compensation is the person's net earnings for their business, minus any deductions allowed for contributions made to retirement plans on behalf of the individual and are further reduced by 50% of the individual's self-employment taxes. In addition, participating in a qualified retirement plan has no influence on your eligibility to make contributions to the Roth IRA. While Roth IRAs are often considered retirement accounts and are most often used this way, there are no limits to who can contribute to them and when (as long as they meet the above income requirements).

If neither you nor your spouse (if any) participate in a work plan, your traditional IRA contribution is always tax-deductible, regardless of your income. Even if your income doesn't qualify you for tax-deductible contributions, that doesn't mean you can't save money on a spousal IRA. If neither you nor your spouse have a retirement plan at work, your contributions (up to the annual maximum) are fully deductible. You can contribute to a traditional or Roth IRA even if you participate in another retirement plan through your employer or company.

By contrast, deposits in a traditional IRA are generally made with pre-tax money; you usually get a tax deduction on your contribution and pay income tax when you withdraw money from the account during retirement. If neither of you has access to a work-savings plan, you can deduct all your contributions up to the limit. If you don't qualify to make a deductible contribution, you can still invest money in a traditional IRA. Meanwhile, if you worked and already have an IRA, but then stopped working, you don't need to open a new IRA for spouse contributions.

Roth IRAs are funded with after-tax dollars; this means that contributions are not tax-deductible. It's known as a spousal IRA, but it's simply a traditional or Roth IRA in the name of the non-working spouse and to which both partners can make contributions. Each spouse can make a contribution up to the current limit; however, the total of your combined contributions cannot exceed the taxable compensation stated on your joint return. In addition to the general contribution limit that applies to both Roth and traditional IRAs, your contribution to the Roth IRA may be limited depending on your reporting status and income.