Who Is Eligible for a Spousal IRA?
Typically a person must have an income to qualify for IRA contributions; however, the IRS guidelines allow an employed spouse to make contributions for their non-working husband or wife. An article from Investopedia lays out the requirements you must meet to use a spousal IRA: • You must be married. • You must file a joint income-tax return. • You must have compensation or earned income of at least the amount you contribute to your IRAs. There are no income limits on who can contribute to a traditional IRA but an article from Smart Money explains the earnings cap for a Roth IRA, the deductibility rules for a traditional IRA, and how any employer-sponsored retirement plan investments play into contributions limits. Re-arranging Retirement Accounts After our retirement investing changes, I was maxing out my Roth IRA then contributing the rest of our “retirement budget” to my 401k; more than enough to get the match of course. After learning about the spousal IRA, I plan on maxing out both
