Complete Guide on Spousal IRA


spousal ira

Here Are The Basics:

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With a spousal IRA, each spouse can contribute up to the maximum contribution limit for an IRA ($5,500 for 2018, or $6,500 if you’re 50 or older), even if one spouse doesn’t have any earned income. This can be a great way to boost your retirement savings if one spouse doesn’t work or doesn’t earn much income.

The earnings in a spousal IRA grow tax-deferred, which means you won’t pay taxes on the money you make in the account until you withdraw it in retirement.

You can choose to invest your spousal IRA in a traditional IRA or a Roth IRA. With a traditional IRA, your contributions are tax-deductible, and with a Roth IRA, your withdrawals in retirement are tax-free.

Few Things To Keep in Mind:

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Spousal IRAs can be a great way to save for retirement, but there are a few things to keep in mind before you open one.

First, you’ll need to have a joint tax return if you want to open a spousal IRA.

Second, if one spouse has a retirement plan at work (like a 401(k)), the contribution limits for a spousal IRA may be reduced.

Pros and Cons on Spousal IRA:

The pros of a spousal IRA are that you can both contribute up to the maximum amount, and the earnings grow tax-deferred. This can be a great way to save for retirement if one spouse doesn’t work or doesn’t earn much income.

The cons of a spousal IRA are that you need to have a joint tax return, and if one spouse has a retirement plan at work, the contribution limits may be reduced.

If you’re considering opening a spousal IRA, talk to your financial advisor to see if it’s right for you. You can also learn more by reading some of the best books on spousal IRA:

1. “The Spousal IRA: The Pros and Cons of Joint Retirement Savings Accounts” by Russ Banham

The Spousal IRA: The Pros and Cons of Joint Retirement Savings Accounts is a book by Russ Banham that discusses the benefits and drawbacks of spousal IRAs. He covers topics such as the contribution limits, how the earnings grow tax-deferred, and whether or not you need a joint tax return. He also includes a section on what to do if one spouse has a retirement plan at work.

2. “The Couple’s Retirement Puzzle: 10 Must-Have Conversations for Building the Life You Want” by Julie Jason

The Couple’s Retirement Puzzle: 10 Must-Have Conversations for Building the Life You Want is a book by Julie Jason that helps couples plan for retirement. She covers topics such as how to save when to retire, and where to live. She also includes a section on spousal IRAs and how they can be used to save for retirement.

3. “Savvy Woman’s Guide to Financial Freedom: How to Secure Your Financial Future and Live the Life You Want” by Kerri Fivecoat-Campbell

Savvy Woman’s Guide to Financial Freedom: How to Secure Your Financial Future and Live the Life You Want is a book by Kerri Fivecoat-Campbell that helps women plan for their financial future. She covers topics such as investing, saving for retirement, and dealing with debt. She also includes a section on spousal IRAs and how they can be used to save for retirement.

Eligibility For Spouse IRA:

If you’re married, you can open a spousal IRA. You don’t need to have any earned income to contribute to a spousal IRA, but you must file a joint tax return. Spousal IRAs can be a great way to save for retirement if one spouse doesn’t work or doesn’t earn much income. The earnings in a spousal IRA grow tax-deferred, which means you won’t pay taxes on the money you make in the account until you withdraw it in retirement.

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