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 ?
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.
Utilize spousal IRAs if one spouse does not have earned income.
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.
All other rules for traditional IRAs apply to spousal IRAs.
Spousal IRAs are a way for the nonworking spouses of wage earners to put aside funds for their futures.
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.
Maximizing Retirement Benefits of Spousal IRAs for Non-Working Spouses
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.
Same-sex married couples can now take advantage of spousal IRAs.
Eligible individuals may contribute up to the maximum annual contribution amount (see below) to a traditional IRA (and up to the maximum annual contribution amount for a spouse if a traditional spousal IRA is available) and possibly deduct this amount from their current taxable income.