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Making Spousal IRA Contributions
If you can deduct your spouse’s Traditional IRA contribution –
but not the Traditional IRA contributions made to your own Traditional IRA – you may decide to fund a Roth IRA for yourself instead if you are eligible to do so.
To make an IRA contribution for your spouse, you must meet the following requirements:
If you decide to fund a Traditional IRA for your spouse, he or she must be under age 70½ for the year for which the contribution is being made.
"If your modified adjusted gross income (MAGI) is over $196,000 for tax year 2017, you cannot deduct your contribution to a Traditional IRA
and cannot contribute to a spousal Roth IRA," says Kevin M. O’Brien, CFP®, AIF, CAP, Peak Financial Service, Inc., Northborough, Mass.
The employed spouse is allowed to make an IRA contribution on behalf of a non-working spouse or a spouse who has little income.
If you are covered by an employer-sponsored plan, your ability to deduct your
spousal IRA contribution depends on your income and your tax filing status.
You may contribute 100% of your compensation or the tax year’s IRA contribution limit, whichever is less, to your IRA.
Helping to fund your spouse’s retirement nest egg can be as important as funding
your own, as retirement assets may be shared during your retirement years.
Should you decide to contribute to your spouse’s IRA, be sure to consider deductibility, including whether
either of your contributions can be deducted and, if not, whether a Roth IRA should be funded instead.