Friday, February 12, 2016

Spousal IRA Contributions: Key Points

• A spousal IRA contribution is made when one spouse has little or no compensation.

• The spouse with little or no compensation for whom the contribution is made must satisfy all other regular contribution requirements.

• If neither spouse participated in a retirement plan at work, all of your contributions will be deductible.

• Married couples who file separately are not permitted to make spousal IRA contributions.

• The amount of your combined contributions can’t be more than the taxable compensation reported on your joint return.

• If you are legally divorced by the end of your tax year, you cannot deduct contributions you make to your former spouse's traditional IRA. You can deduct only contributions to your own traditional IRA.

• Same-sex couples who are legally married are permitted to make spousal IRA contributions.

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