Spousal IRA

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Spousal IRA

An individual retirement account in the name of an unemployed spouse.

Spousal IRA

An IRA where the beneficiary the spouse of the person making the contributions. This provides a steady stream of income for the spouse after the contributor's retirement or death, especially when he/she has little or no other income. This is especially useful should the spouse who earns the income die prematurely. A spousal IRA has the same terms as any other IRA and may be either a traditional IRA or a Roth IRA.

spousal IRA

An individual retirement account in the name of a nonworking spouse. A spousal IRA may be funded by the working spouse up to a maximum amount established by law. There is also a limit on annual contributions to the combination of IRAs of the working and nonworking spouses.
References in periodicals archive ?
219(c), as amended by SBJPA Section 1427(a) (effective for years beginning after 1996), changes the rules and limits associated with contributions to spousal IRAs.
Single-income couples can use Spousal IRAs to increase overall retirement savings and benefit from extra tax advantages.
Fidelity is a long-time supporter of spousal IRAs and was actively involved in the effort to pass the IRA Equity Act introduced in February 1994.