spousal ira
My wife is working part time (10 hours a week) and does not contribute to a retirement program
with her employer. I am fully retired. I understand she can contribute to a traditional IRA and that
I can have a spousal traditional IRA. I read that regardless of our AGI, these IRA contributions would
be a tax deduction on our 2023 tax return. Is this correct?
Thanks
Terry Says
It depends on your income. Here are the rules for a non-working spouse’s IRA, and as well, the ability of the working spouse to contribute to an IRA. Suggest making it a Roth IRA, so no deduction — but tax-free growth.
Marital Status: Married
Tax Filing Status: Married, filing jointly
Earnings: The contributing spouse must have compensation or earned income of at least the amount annually contributed to the nonworking spouse’s IRA. If the contributing spouse also has an IRA, annual compensation or earned income must exceed the combined contributions of both IRAs.
Age: The nonworking spouse must be under age 72 in the year of the contribution for a traditional IRA. There are no age restrictions on a Roth IRA for a nonworking spouse.
