29 responses

  1. Romeo
    February 26, 2011

    A pretty beefy article. Good information. What I don’t understand is the random picture of the president.

    • moneycone
      February 26, 2011

      Thanks Romeo! The prez picture? ‘Yes you can!’ :-)

      • Romeo
        February 26, 2011

        Got it. :)

  2. Everyday Tips
    February 28, 2011

    Great information. I wish I would have done that years ago when I stopped working. You needed to post this in 1999! :)

    • moneycone
      March 1, 2011

      Hey in 1999, I was riding the stock market boom blissfully unaware of the impending doom! :)

  3. Aloysa
    February 28, 2011

    I’ve never even heard about spousal IRA. I just learned something new! Thank you! Now I will be able to show off at some social gathering. :-)

    • moneycone
      March 1, 2011

      I’m glad you like it Aloysa!

  4. youngandthrifty
    March 1, 2011

    I like the picture of the President :)

    IRA’s sound a lot like RRSP’s (the Canadian equivalent, I suppose).

    • moneycone
      March 1, 2011

      Pretty much!

  5. Mrs. BrokeProfessional
    March 1, 2011

    Great post! I had no idea such an option existed. Wish we had known last year while Mr. BP was a law clerk and I was a lowly graduate school intern. I will certainly pass the info along to friends and colleagues as it truly is something I think many people would like to take advantage of during these economic times.

    • moneycone
      March 2, 2011

      Thanks Mrs. BP! (And welcome!)

      Very true! I wish more people knew about this. But spousal iras are poorly understood – even my broker at first didn’t know what I was talking about!

  6. Romeo
    March 2, 2011

    Whoa! I’d definitely get rid of my broker. It may be uncommon to the average Joe, but it shouldn’t be for the broker. Talk about “wealth preventing.” :)

  7. Barb Friedberg
    March 3, 2011

    Good job promoting an important investment vehicle for those stay at home moms and dads. Hubby and I have IRA’s from many years ago and continue to fund along with retirement workplace accounts whenever we can. I’m a fan!!!

    • moneycone
      March 3, 2011

      Smart choice Barb!

  8. Crystal @ BFS
    March 4, 2011

    Cool beans. If I quit my day job and become a full time blogger, would I have my own IRA with blogging income or a spousal IRA with Mr. BFS’s income?

    • moneycone
      March 4, 2011

      You would have your own IRA Crystal!
      Ok, I’m editing this to clarify the response a bit. If your taxable income is less than your husbands but your husband’s income can cover the IRA limits ($10000 combined) for both AND you file jointly, you can use Spousal IRA to overcome your lower limit. A spousal IRA is still yours even though it is partly or fully funded by your husband!

      Remember, there is nothing called Spousal IRA in IRS’ eyes! It is just a way for stay-at-home moms or dads to contribute to their retirement if the working spouse earns enough to cover both.

  9. Little House
    March 4, 2011

    That’s great to know. Though I noticed that the catch is you have to be filing jointly. This one always gets me since my husband and I file separately for a very good reason. Thanks for sharing this info in case we ever decide it would be better to file jointly.

    • MoneyCone
      March 22, 2011

      Yes joint filing is a requirement for spousal IRAs.

  10. Spruce Up Your Finances
    March 5, 2011

    This is really a great information for spouse who are staying at home. The government are very nice when it comes to the helping the non-working spouse have a retirement plan as well. This is one good example of the IRS making sure that the non-working spouse is also covered by a retirement plan. Another perfect example is that they are also eligible on receiving an amount equivalent to half of their spouse’s social security benefits.

    • MoneyCone
      March 22, 2011

      Good point!

  11. Ravi Gupta
    March 11, 2011

    Hmm a good article. I’m not sure if I could ever do that for my spouse. When I was doing my tax class we learned about Spousal IRAs and they seem like a decent idea but a huge issue. It seems like a great way to get out paying taxes on someone who doesn’t report earned income and at the same time wants an IRA.

    • moneycone
      March 11, 2011

      Why is it an issue? The IRS is very specific about the rules. File jointly and your income should be enough to cover the contribution for both.

  12. Money Reasons
    March 12, 2011

    Yeah, at that great!

    I knew about it, but since we both work (my wife works 8 hrs a week), we both make enough to fund roth iras…

    Now only if we both did fund them… maybe next year! :)

  13. LaTisha @FSYAonline
    March 22, 2011

    This is great information! Especially for those Real Housewives that don’t work! lol I gotta stop watching reality tv…

    • MoneyCone
      March 22, 2011

      Thanks LaTisha!

  14. Keith Dennis
    April 1, 2011

    Thanks for the great IRA information. I usually work with people in retirement and not contributing anymore so it is easy to forget the pre-retirement details.

    Thanks for the reminder! Just in time to open my wife’s spousal IRA!

    Keith

  15. Denise @ The Single Saver
    April 12, 2011

    This is the most informational IRA article I have read in a long time. Thank you!

  16. Financial Samurai
    April 22, 2011

    The thing that bums me out is that after you make a certain income, you can’t contribute! I think that’s unfair and messed up!

    Sam

  17. Skip
    August 31, 2012

    If I just learned about spousal IRAs, but have been eligible for two years in the past, can I somehow make contributions for former years, perhaps by filing an amended return??

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