Spousal IRA

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DEFINITION of 'Spousal IRA'

A type of individual retirement account that allows a working spouse to contribute to a nonworking spouse's retirement savings. A spousal IRA creates an exception to the provision that an individual must have earned income to contribute to an IRA. The working spouse's income, however, must equal or exceed the total IRA contributions made on behalf of both spouses.

INVESTOPEDIA EXPLAINS 'Spousal IRA'

To qualify to make spousal IRA contributions, the couple also must file a joint tax return. Spousal IRAs can be either traditional or Roth IRAs, and are subject to the same annual contribution limits, income limits and catch-up contribution provisions as traditional and Roth IRAs. While IRAs cannot be held jointly in both spouse's names, spouses can share their account distributions in retirement.

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RELATED FAQS
  1. What are the contribution limits for a Spousal IRA?

    The contribution limits for spousal IRAs change over time; for 2014, the limit for all IRAs was the lesser of $5,500 (or ... Read Full Answer >>
  2. How do I roll over a spousal IRA?

    “Rollover,” in regard to finances, generally means “transfer.” To roll over a spousal IRA, the assumption is that the spouse ... Read Full Answer >>
  3. My spouse has little/no income. Can I contribute to my spouse's IRA?

    Yes. You may make a Traditional IRA contribution to your spouse's Traditional IRA because you have eligible compensation. There ... Read Full Answer >>
  4. How are benefits from a provident fund taxed?

    Not all provident fund benefits are treated equally, even in the same country. Thailand, for instance, has three separate ... Read Full Answer >>
  5. I'm in my 50s. Should I still participate in my company's Roth 401(k)?

    Participating in an employer-sponsored Roth 401(k) program is an excellent way to plan for retirement at any age. The longer ... Read Full Answer >>
  6. What happens to my Roth 401(k) if I leave my job?

    A Roth 401(k) works like a traditional 401(k) plan, in that contributions are made through paycheck deferrals and assets ... Read Full Answer >>
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