My wife entered the US as a TD last year. We wish to open an IRA for her. However, brokerages require either an SSN or ITIN. She's not eligible for an SSN, and needs to file a tax return to get an ITIN. Hence the catch-22; we need to make the IRA contribution <i>before</i> filing the tax return in order to claim the deduction, right?
Is there any way around this? Or are TDs effectively unable to make IRA contributions in their first tax year in the US?
Catch-22 for ITINs
Moderator: Mark T Serbinski CA CPA
You are leaving it a little late, but had you filed your taxes REAL early (like Feb 1st) with W-7, you probably would have gotten the ITIN by April,at which time you could make the IRA contribution and ammend your return.
The problem of course is with the investment firm. They should have policy in place to accept initial contributions with 'pending' Tax IDs, but I doubt if any do.
You might just try your local bank, buying a short-term $3000 CD as an IRA. Local banks usually have more flexible policies that Vanguard et al. Then once you have your ID, transfer to one of the big boys.
<i>nelsona non grata</i>
The problem of course is with the investment firm. They should have policy in place to accept initial contributions with 'pending' Tax IDs, but I doubt if any do.
You might just try your local bank, buying a short-term $3000 CD as an IRA. Local banks usually have more flexible policies that Vanguard et al. Then once you have your ID, transfer to one of the big boys.
<i>nelsona non grata</i>