Q&A of the Week April 3, 2024

Question

What is a Spousal IRA?

Answer

A Spousal IRA is a separate Roth or traditional IRA for a spouse who does not work. It is a retirement savings strategy for some married couples who have one income.

Spousal IRAs are pretax and may provide a tax break. For your 2023 tax return, you can make a contribution to a Spousal IRA (or any IRA) until April 15, 2024. The contribution limit for 2023 is $6,500, but any contribution could provide tax savings.

The 2024 contribution limit for IRA increased to $7,000. You can read more about contribution limits here.

Please consult a tax professional with your questions and help determine if a Spousal IRA may be a good option for you.