{"id":11431,"date":"2021-06-02T23:18:47","date_gmt":"2021-06-02T23:18:47","guid":{"rendered":"https:\/\/udirectira.com\/?p=11431"},"modified":"2021-11-05T15:17:19","modified_gmt":"2021-11-05T15:17:19","slug":"the-spousal-ira","status":"publish","type":"post","link":"https:\/\/udirectira.com\/the-spousal-ira\/","title":{"rendered":"The Spousal IRA"},"content":{"rendered":"
by Jeffrey Dixon, MBA, CISP, SDIP<\/p><\/div>\n
With a Spousal IRA (also known as the Kay Bailey Hutchison Spousal IRA), you do not need to earn income to contribute to an IRA account.<\/p>\n
As you probably know,\u00a0 you must have your own income from a W-2 job (or from being self-employed) to make an IRA contribution.\u00a0 Here is an exception to that rule.<\/p>\n
If your spouse earns income and you do not, you are still allowed to contribute into your own IRA account. This is called the Spousal IRA.\u00a0 This is not so much a kind of IRA as it is an IRS rule.\u00a0 The Spousal IRA contribution can only be made to a Traditional<\/a> or Roth IRA<\/a> account.\u00a0 It is important to understand the differences. <\/a><\/p>\n The maximum contribution you can make is $6,000 if under the age of 50 and $7,000 if 50+.<\/p>\n A spousal IRA is an excellent way for a spouse who does not earn income to save for retirement. A spousal IRA remains intact even if the spouse without earned income starts to receive pay for work. In this case, they can still contribute to the IRA, according to regular IRA rules.<\/p>\n In 1981, with the passage of the Economic Recovery Tax Act (ERTA), Americans could contribute to an IRA for themselves and their nonworking spouses if they were younger than 70 \u00bd years of age. Today that age would be age 72 (70 \u00bd if you reach 70 \u00bd before January 1, 2020).<\/p>\n To discuss Spousal IRA contributions or other IRA or Solo 401k questions, please contact uDirect IRA Services at 714-980-4936 or email us at info@uDirectira.com.<\/p>\n","protected":false},"excerpt":{"rendered":" With a Spousal IRA (also known as the Kay Bailey Hutchison Spousal IRA), you do not need to earn income to contribute to an IRA account. As you probably know,\u00a0 you must have your own income from a W-2 job (or from being self-employed) to make an IRA contribution.\u00a0 Here is an exception to that…<\/p>\n","protected":false},"author":5,"featured_media":11432,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-11431","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"yoast_head":"\nSpousal IRA Rules<\/strong><\/h4>\n
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40 Years of the Spousal IRA<\/strong><\/h4>\n