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.
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