Spousal IRA is a strategy you can use when you have a single income household but file taxes jointly. It allows you to put money in an ira for the non-working spouse without the earned income requirement. The irs will allow you deduct the contribution, giving you a tax advantage.

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A Spousal IRA is an individual retirement account (IRA) that allows married couples to save for retirement. It is an important tool for couples who want to maximize their retirement savings and take advantage of tax benefits.

A Spousal IRA is an individual retirement account that is owned by one spouse, but the contributions are made by the other spouse. The contributions are made with after-tax dollars and the account is taxed when the funds are withdrawn. The contributions are limited to the lesser of the two spouses’ earned income or $6,000 for 2020 ($7,000 if the spouse is 50 or older).

The main benefit of a Spousal IRA is that it allows couples to take advantage of tax benefits. Contributions to a Spousal IRA are tax-deductible in the year they are made, and the funds grow tax-deferred until they are withdrawn in retirement. This can help couples reduce their tax liability and maximize their retirement savings.

Another benefit of a Spousal IRA is that it can help couples save more for retirement. Since the contributions are limited to the lesser of the two spouses’ earned income or $6,000 (or $7,000 if the spouse is 50 or older), couples can combine their contributions to maximize their savings. For example, if one spouse earns $4,000 and the other earns $6,000, they can each contribute up to $6,000 to their respective Spousal IRAs for a total of $12,000.

Finally, a Spousal IRA can help couples save for retirement even if one spouse does not have earned income. As long as the spouse with earned income contributes to the Spousal IRA, the non-working spouse can still benefit from the tax advantages.

A Spousal IRA is an important tool for married couples who want to maximize their retirement savings and take advantage of tax benefits. By combining their contributions, couples can save more for retirement while reducing their tax liability.