Want to contribute to an IRA, but don’t think you can because you don’t have any income?

If you’re married and your spouse works, you can probably still contribute to an IRA thanks to their income. It’s called a spousal IRA, and Curt explains how they work in this video.

In this Video:
0:20 – Introducing the Spousal IRA
1:04 – Requirements
1:50 – Contribution Limits
2:06 – Income Restrictions
2:27 – How to Open a Spousal IRA
3:53 – Wrap Up

Here’s a link to the written post on our website:

Our Roth Account playlist:

Other Related Videos:

Other Related Blog Posts from MartinMoney.com:
Can I Make an Early Withdrawal from My 401(k) or IRA Before 59.5? –
Five Reasons Roth IRAs Will Never Be Taxed –
Do I Have to Report My Roth IRA on My Tax Return?
The Backdoor Roth IRA –
Should I Have Both a Roth IRA and a 401(k)?

Thanks for watching! Let us know if there are any other topics you want us to cover in the comments below.

Don’t ever put any of your personal information in the comments! This makes you an easy target for scammers, some of whom may attempt to pretend that they are me.

Disclaimer: This video is for information and entertainment only. None of the contents should be considered legal, accounting, or other professional advice. You should reach out to a qualified professional before making your own financial decisions….(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

A spousal Individual retirement account (IRA) is a type of retirement account that allows a non-working spouse to contribute to an IRA, even if they do not have earned income. This can be a valuable tool for couples who want to save for retirement, especially if one partner has little or no income.

In traditional IRAs, contributions are generally only allowed for individuals who have earned income, such as from a job or self-employment. However, a spousal IRA allows a non-working spouse to contribute to an IRA using their partner’s income. This can help ensure that both partners have the opportunity to save for retirement, even if one is not currently earning income.

To qualify for a spousal IRA, the couple must be married and file a joint tax return. The working spouse must have enough earned income to cover both their own IRA contribution and the contribution for their non-working spouse. The total contributions for both spouses cannot exceed the annual contribution limit, which is $6,000 in 2021 for individuals under the age of 50, and $7,000 for those 50 and older.

There are two types of IRAs that can be used as spousal IRAs: traditional IRAs and Roth IRAs. With a traditional spousal IRA, contributions may be tax-deductible, and the funds will grow tax-deferred until they are withdrawn in retirement. With a Roth spousal IRA, contributions are made with after-tax dollars, but the funds grow tax-free, and qualified withdrawals in retirement are also tax-free.

Spousal IRAs can be a valuable tool for couples who want to maximize their retirement savings and take advantage of the tax benefits of individual retirement accounts. By allowing a non-working spouse to contribute to an IRA, it can help ensure that both partners have the opportunity to save for retirement, even if one is not currently earning income.

It’s important to note that spousal IRAs are subject to the same rules and regulations as traditional and Roth IRAs, including contribution limits, income restrictions, and early withdrawal penalties. Before opening a spousal IRA, it’s important to consider your individual financial situation and consult with a financial advisor or tax professional to determine the best retirement savings strategy for you and your spouse.

In conclusion, a spousal IRA can be a valuable tool for couples who want to save for retirement, even if one partner is not currently earning income. By allowing a non-working spouse to contribute to an IRA using their partner’s income, it can help ensure that both partners have the opportunity to save for the future. Consider discussing with a financial advisor to determine if a spousal IRA is the right option for your retirement savings plan.