October 7, 2006 4:45 PM
Can I Fund An IRA For Non-Working Spouse? Use Spousal IRA.
Yes, you can contribute to the IRA of your non-working spouse. In fact, this effectively allows double retirement savings opportunities for one-breadearner families.
From Fidelity:
A spousal IRA is a way for non-working spouses or working spouses who are not covered by an employer-sponsored plan to have a Roth or Traditional IRA, even if they have little or no earned income.
Non-working spouses can contribute up to the annual limit to their own Roth or Traditional IRA if:
- The combined contributions do not exceed combined compensation
- The couple files a joint federal income tax returnThis IRA contribution is in addition to any IRA contribution the wage-earning spouse makes. For 2005, eligible married couples can contribute up to $4,000 each for a combined total of $8,000 ($9,000 with the catch-up contributions of $500 each for individuals 50 or older by the end of the year), for the 2005 tax year.
In 2006, eligible married couples can contribute up to a combined total of $8,000 ($10,000 including the $1,000 catch-up contribution for individuals 50 or older by the end of the year).
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