Spousal IRA
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The Spousal IRA allows
spouses without earned income and spouses who do not earn enough
income to fund an IRA fully, to qualify for an IRA. This feature is
the only difference between this IRA and the Roth or Traditional IRA
which both require earned income. Spousal
IRAs can act as a supplement to other retirement programs.
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Contributions
can be made either to a Traditional or Roth IRA.
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Contribution
Limitations (Same as Traditional and Roth IRAs):
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 $5,000 or $6,000 (50 or older)
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$10,000 or $12,000 (both 50 or older) if you file a joint tax
return, total contributions
for both the working and non-working
spouses
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Spousal
IRA holders who decide on the Traditional IRA must determine how
much of the contribution is deductible.
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Contribution Deductibility:
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The full amount contributed to the Spousal IRA is deductible when
the working
spouse does not have an employer-sponsored plan.
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The full amount contributed to the Spousal IRA is not entirely
deductible when the
working spouse has an employer-sponsored
retirement plan.
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For this second instance, if the adjusted gross income is less than
$166,000, the
non-covered spouse might still be able to deduct the
entire contribution, but the
deduction is phased out
between $166,000 and $176,000 (when jointly computed).
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