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February 16, 2009

Spousal IRA

Your Guide

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Definition

An IRA established by a nonworking spouse ( or spouse who has little or no eligible compensation for IRA purposes) to receive a contribution (‘spousal IRA contribution’) made by his/her working spouse.

A spousal IRA can be a Traditional IRA or a Roth IRA .

Referring Cite

IRC §219(c)(2), IRC § 219(f)(1). IRC § 408(a), IRC § 408A

Additional Helpful Information

  • In order for one spouse to make an IRA contribution on behalf of the other spouse, the following requirements must be met:
    • Contribution to one spouse’s IRA cannot exceed the limit in effect for the year
    • The IRA cannot be held ‘jointly’
    • All other IRA rules apply

Written By

Denise Appleby

Denise is CEO of Appleby Retirement Consulting Inc., a firm that provides IRA resources for financial/ tax/legal professionals. She has over 20 years of experience in the retirement plans field, which includes training and technical consultation.

Denise writes and publishes educational /marketing tools for advisors; available at http://irapublications.com. Denise co-authored several books on IRAs

Denise is a graduate of The John Marshall Law School, where she obtained a Masters of Jurisprudence in Employee Benefits, and has earned 5 professional retirement designations.
She has appeared on numerous media programs, sharing her insights on retirement tax laws.

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