Same-sex married couples were denied the ability to file joint tax returns, make spousal IRA
contributions, offset one spouse's income with the other spouse's losses, and generally treat their tax situation the same as opposite-sex married couples.
According to USA Today, the current Congress "is on track to break the previous record low of 283, set in 2011-12 by the 112th Congress." Keep in mind that included in the 125 laws to date that have been passed and signed by President Barack Obama are some real pressing policy issues like Public Law No: 113-10 which was passed "to specify the size of the precious-metal blanks that will be used in the production of the National Baseball Hall of Fame commemorative coins" and Public Law No: 113-22 "to rename section 219(c) of the Internal Revenue Code of 1986 as the Kay Bailey Hutchison Spousal IRA
." Color me unimpressed.
With the Spousal IRA
, nonworking wives can contribute a lesser amount, usually up to $5,000.
* Spousal IRA
. If you're unemployed or retired but your spouse is still working, you can contribute to a spousal IRA
, as long as your spouse has enough earned income to cover the contribution and you file a joint return.
Spousal IRA--A spousal IRA
is one in which a taxpayer's nonworking spouse is permitted to contribute to an IRA based upon the compensation of the taxpayer.
The traditional IRA deduction is limited to the maximum contribution amount each year (and up to the maximum contribution amount for a spouse if a traditional spousal IRA
is available), with phaseout of the deduction if modified adjusted gross income exceeds certain limits and the individual or spouse is an active participant in a tax-favored employer retirement plan, as discussed below.
This book, aimed at taxpayers, includes information on retirement distribution planning, IRA beneficiary forms, inherited IRA and spousal IRA
rules, estate planning and retirement accounts, and tax planning.
If you do not work, get your spouse to contribute to a Spousal IRA
for you (the limit is $4,000) so that you can build your savings.
One of the most overlooked retirement planning and funding vehicles is the spousal IRA
. Oftentimes, the working spouse will maximize his or her participation in a company-provided 401(k), believing that he or she is funding for both partners.
An individual may make a deductible contribution to a spousal IRA
for a spouse with less taxable compensation than the individual.
In addition, if your spouse is not working, you might consider getting a spousal IRA
. However, it is essential that you consult with a qualified financial professional to determine which course of action best suits your needs (especially when comparing the benefits of the "traditional" IRA and the Roth IRA).
(The sole exception has been the Spousal IRA
that was only recently raised from $250 to a $2,000 annual contribution limit.) These nonearning years occur during what would normally be peak-income time.