If you are a stay at home mom (or dad) or a spouse that brings in less income than your spouse, you can contribute to a spousal IRA.

“For 2023, if you file a joint return and your taxable compensation is less than that of your spouse, the most that can be contributed for the year to your IRA is the smaller of the following two amounts:

-$6,500 ($7,500 if you are age 50 or older)
-The total compensation includible in the gross income of both you and your spouse for the year, reduced by the following two amounts:
A. Your spouse’s IRA contribution for the year to a traditional IRA.
B. Any contributions for the year to a Roth IRA on behalf of your spouse.”

…(read more)

LEARN MORE ABOUT: IRA Accounts

CONVERTING IRA TO GOLD: Gold IRA Account

CONVERTING IRA TO SILVER: Silver IRA Account

REVEALED: Best Gold Backed IRA

Being a stay-at-home parent is a rewarding and challenging role that comes with numerous responsibilities. While you dedicate your time and energy to raising and nurturing your children, it is important to remember that you can still take steps to ensure your financial security. One convenient option available to stay-at-home moms or dads is the ability to contribute to a Spousal IRA.

An Individual retirement account (IRA) is a tax-advantaged savings plan designed to help individuals accumulate funds for their retirement. Typically, IRAs are used by working individuals who earn income and wish to set aside a portion of their earnings for their future. However, the Spousal IRA allows a non-working spouse to save for retirement, even if they don’t have earned income themselves.

The Spousal IRA is a fantastic option for stay-at-home parents who may not have a regular income but still want to build a nest egg for their retirement years. It provides an opportunity to contribute to a retirement fund and benefit from the potential growth of your invested savings. By contributing to a Spousal IRA, stay-at-home moms or dads can ensure their future financial independence and security.

How does a Spousal IRA work? It’s quite simple. If you are married and file a joint tax return, you can take advantage of this opportunity. The working spouse can contribute to their own IRA account and contribute additional funds to a separate IRA account on behalf of their non-working spouse. Essentially, you are making contributions for each other, hence the term “Spousal IRA.”

The contribution limits for a Spousal IRA are typically the same as those for a regular IRA. As of 2021, the maximum annual contribution for individuals under the age of 50 is $6,000, while those aged 50 and above can contribute up to $7,000. Therefore, if you and your spouse both meet the age requirements, you can potentially contribute up to $12,000 or $14,000 as a couple.

By contributing to a Spousal IRA, not only are you securing your financial future but you are also taking advantage of potential tax benefits. Depending on the type of IRA you choose – traditional or Roth – you may be able to deduct your contributions from your taxable income this year or withdraw your funds tax-free during retirement.

It’s important to note that a Spousal IRA can be held at the same financial institution where the working spouse’s IRA is located, or at a different institution, if preferred. You have the flexibility to choose the investment options that suit your risk tolerance and long-term financial goals.

Saving for retirement should be a joint effort for couples, recognizing the valuable contributions made by stay-at-home parents. Opening a Spousal IRA is a proactive step towards financial security for both you and your spouse, ensuring a comfortable retirement and peace of mind for your family.

As a stay-at-home mom or dad, you play an indispensable role in your family’s life. However, it’s important to remember that your own financial future matters too. Take advantage of the opportunity to contribute to a Spousal IRA and invest in your retirement. Your decision to save today will undoubtedly pay off in the future, allowing you to enjoy your golden years while reaping the rewards of your dedication as a stay-at-home parent.