Tie The Knot For Retirement With A Spousal IRA
Published Wednesday, December 31, 1969 at: 2:00 PM EST
In most families, one spouse does better financially than the other. For example, if you stayed home to look after the children while your spouse worked full-time, you may not have accumulated as much money for retirement as your spouse.
But having a low income doesn't necessarily mean you can't make significant contributions to a retirement account. You and your spouse might consider a spousal IRA. If at least one of you has earned income, you both can contribute to a traditional IRA for your spouse as well, within certain limits, until the working spouse reaches age 70½.
The annual limit for IRA contributions is $5,500 or $6,500 if you're age 50 or older. That ceiling is effectively doubled for a spousal IRA—for example, if both spouses are 55, they can contribute a total of $13,000.
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