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Eli Mitcham speaks out on common
financial planning concerns. Information provided here is meant to be general in nature and should not be construed as a solicitation to effect transactions in securities, or the rendering of personalized investment advice for compensation, over the Internet. Disclosure to Consumers |
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- How to Leverage your IRA
- Don't Make this Mistake with Your IRA
- Particulars of the Stretch IRA
- Missed Your RMD? Better Get out your checkbook
- What to Do if your IRA is the bulk of your estate?
- Which Investments are best for your IRA?
Filled with Timely Tips to help you get the most out of your finances!
    
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IRAs and Non-Working SpousesIf you are still working, you may be looking for a way to put away money for your stay-at-home spouse. You can contribute up to $3,000 (plus another $500 if you’re 50+) to an IRA for him or her. There are a few requirements to keep in mind, though: • One spouse must have earned income, such as wages, a salary, tips, professional fees, or bonuses. • You must be married and file a joint tax return. • The IRA contribution (for one or both spouses) can’t exceed $3,000 each (plus the catch-up amount) or the total amount of earned income, whichever is less. • Contributions have to be made by April 15th (for the past year) or the day you file your taxes, whichever is earlier. • Contributions to traditional IRAs can’t be made if your spouse is over 70½ in the year for which you are making the contribution. Yet if you’re over 70½, you may be able to fund an IRA for your spouse. However, two factors can limit the deductibility of contributions:
1. Participation by the working spouse in an
employer-sponsored retirement plan Or as long as your income does not exceed the IRS’s guidelines, you could put money in your spouse’s Roth account regardless of your or your spouse’s age. The contributions are not deductible, but the funds would accumulate tax-free for as long as he or she lives. And distributions are tax-free as well. Please keep in mind that a 10% federal tax penalty may apply to traditional and Roth IRA withdrawals taken prior to age 59 ½ and a Roth IRA does have a five-year holding requirement. If you would like to review the investment options for your non-working spouse, please contact me to learn more. If you would like to meet either in person or by telephone, please use the CONTACT US link and let me know. I look forward to meeting you!
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