Funding a Roth IRA using a joint savings account
Here’s a summary of the main problem and solutions discussed in the post:
- Main Problem: The user’s wife was unable to fund her Roth IRA from a joint savings account due to an identity verification issue.
- Solution: Contributions from a joint account are considered third-party Electronic Funds Transfers (EFTs) if the contributor is not the primary owner, which cannot be accepted for IRA deposits.
- Recommendation: The user was advised to transfer the funds to the wife’s individual account first before making the contribution to the Roth IRA.
Here’s the full thread
My wife just opened a Roth IRA. She set up recurring transfers from her checking to the Roth for this year, but wanted to fund last year from a joint savings account. When she tried, she got a message that her identity could not be established. Is it not possible to fund an IRA from a joint savings account or is there additional information she needs to associate with her account so she can?
Hey there, @HiddenBlindspot!
While it is possible to transfer from a joint account to your wife’s Roth IRA via Electronic Funds Transfer (EFT), if she is not listed as the primary owner on the joint account, this would be considered a third-party EFT. Third-party EFTs cannot be used for deposits into Fidelity accounts. You may work with your bank to transfer the funds into her account first before contributing to the Roth IRA at Fidelity.
Please let us know if she is the primary owner, or if you have any other questions, and we can review this further. 🟢
We checked and I am the primary on the account, so that explains a lot. Thank you for replying and explaining things.
You are very welcome! Please reach out any time you need us. 🟢