Spousal IRA
What is it? A tax-deferred retirement account for spouses who do not work for pay. The IRS allows you to contribute $2,000 a year on behalf of your stay-at-home spouse if you are employed and file a joint return. You may also contribute $2,000 a year to a traditional IRA for yourself. Your contribution to a Spousal IRA, which follows traditional IRA rules, is fully deductible if you did not participate in a company-sponsored retirement plan or if your income falls below $31,000 in 1999 for single filers and $51,000 for married couples. The deduction phases out at $41,000 for singles and $61,000 for married couples. Those limits gradually rise to $50,000 to $60,000 for single taxpayers in 2005 and $80,000 to $100,000 in 2007 for married couples.Added By: Peyton
The Spousal IRA definition has been viewed 209 Time(s)!
Send To Friends!
If you'd like to send the Spousal IRA definition to yourself or to your friends/colleagues, just enter the e-mail addresses in the boxes below -We hope you now understand the meaning of Spousal IRA. If you need any more information on this term, please don't hesitate to contact us.