spousal IRA

Spousal IRA

A traditional or Roth IRA established and funded by an individual for his/her spouse.

Notes:

These plans are typically set up when the spouse has little or no income, as they provide added benefits in that case. The contribution limits and eligibility requirements are the same for a spousal IRA as they are for a regular IRA.

See also: In-Service Withdrawal, IRA, IRA Conversion, IRA Adoption Agreement and Plan Document, Non-Qualified Distribution, Ordering Rules, Qualified Distribution, Recharacterization, Reconversion, Required Minimum Distribution, Roth IRA, Triggering Event

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Spousal IRA

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

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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.