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 ?
* Utilize spousal IRAs if one spouse does not have earned income.
Called a Kay Bailey Hutchison IRA or spousal IRA, this is an opportunity to save for retirement and save taxes as well.
Finally, married women who leave the workforce can leverage their spousal IRAs.
Contributions to spousal IRAs for 2015 must also be made by April 18th.
Taxpayers should consider maximizing contributions to 401(k) plans, IRAs, Spousal IRAs for non-working spouses and catch up contributions into those accounts for individuals 50 and over.
Spousal IRAs. An additional contribution can be made for a spouse in certain cases.
Spousal IRAs are a way for the nonworking spouses of wage earners to put aside funds for their futures.
A second limit of $250 applied to nonworking spousal IRA contributions (spousal IRAs).
* Maximizing Retirement Benefits of Spousal IRAs for Non-Working Spouses
(Same-sex married couples can now take advantage of spousal IRAs. See Planning Challenges Persist for LGBT Clients Despite Marriage Ruling)
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.
If taxpayers have contributed the maximum allowed to various tax-deferred programs, they should consider contributions to IRAs, particularly for nonworking spouses, who will be permitted a $2,000 spousal IRA contribution beginning in 1997 instead of the $250 currently permitted if the combined compensation of both spouses is at least equal to the amount contributed to the IRA.