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A nonworking spouse can still have an IRA

Posted by Admin Posted on June 02 2020

It’s often hard for married couples to save for retirement when one spouse doesn’t work. An IRA contribution is generally only allowed if you have compensation. However, an exception exists. A spousal IRA allows a contribution to be made for a nonworking spouse. Under the rules, a couple can contribute $6,000 to an IRA for a nonworking spouse in 2020 ($7,000 if the spouse will be age 50 by the end of the year). However, if in 2020, the working spouse is an active participant in an employer retirement plan, a deductible contribution can be made to the IRA of the non-participant spouse only if the couple’s adjusted gross income doesn’t exceed a certain threshold. Contact us for more details.