Understanding Spousal IRA: A Guide for Couples

Are you married and looking for ways to boost your retirement savings? A spousal IRA might be the solution you need. This type of individual retirement account is designed for married couples where one spouse does not have earned income. It allows the non-working spouse to contribute to an IRA based on the earned income of their working spouse.

Here are some key points to know about spousal IRAs:

• Eligibility: The non-working spouse must be married to a spouse who has enough earned income to cover both contributions.
• Contribution limits: The contribution limits for a spousal IRA are the same as for a traditional IRA or Roth IRA.
• Tax benefits: Contributions to a spousal IRA may be tax-deductible, depending on the couple’s income and other retirement plans.
• Withdrawal rules: Withdrawal rules for spousal IRAs are the same as for traditional IRAs or Roth IRAs.

By taking advantage of a spousal IRA, couples can maximize their retirement savings and enjoy tax benefits along the way. Consult with a financial advisor to see if a spousal IRA is the right option for you and your spouse.