Because the convenience of the acronym, we forget what it stands for. In this case, IRA stands for “Individual Retirement Account”, or more technically, “Individual Retirement Arrangement”. Consequently, you know this cannot be a joint account.
However, don’t get discouraged by the title. Just because it’s not a joint account, you can still contribute on your spouse’s behalf if you make enough to cover for both annual contributions, and you can do so even your spouse is a stay-at-home mom.
Furthermore, if you are worried about the estate planning because of the benefit of a joint account, please don’t! IRA has more creditor protections as long as you remember to name primary and contingent beneficiaries.
Lastly, if one passes on, the survival spouse has more choices. He/she can either take the deceased spouse IRA and treated as his/her own, or as an inherited IRA. Of course, there are many more rules and intricacies related to that.
An individual retirement account (IRA) must be established and maintained on an individual basis. It cannot be held jointly. However, the IRA owner may designate his or her spouse (or any other party) as the beneficiary of the IRA. In some states, the spouse must provide written consent if the IRA owner designates any party other than the spouse as the beneficiary of the IRA.
An IRA cannot be held jointly with a spouse. It is an Individual Retirement Account.
The beneficiary section would be most relevant in this situation. If you want the simplest process for your IRA to go your spouse when you die then put your spouse as the Primary Beneficiary on your IRA.
The Beneficiary designation will supersede your trust or other legal document.
Retirement accounts cannot be held jointly.
All retirement accounts, such as an IRA, Roth IRA, 401(k), 403(b), etc., are owned by a single person and must be registered to a natural person (not an entity).
It is common for spouses to be the primary beneficiary on each other’s retirement accounts or pension benefits. In fact, some states require spousal consent if you wish to name someone other than your spouse as the primary beneficiary for a retirement account.
An IRA has to be established on an individual basis. Therefore, an Individual Retirement Account cannot be held jointly. The IRA owner can designate his or her spouse as the primary beneficiary of the IRA. Also, the IRA owner can designate contingent beneficiaries for the IRA.
However, in some states if the IRA owner wants to designate someone other than the spouse as the beneficiary of the IRA the spouse must provide written consent.