When we first meet a potential client, and begin to learn about their circumstances, it is not uncommon to find that a non-working spouse is not taking advantage of an IRA contribution. Whether you stopped working temporarily or never worked, you still can save for retirement.
A non-working spouse can make a deductible IRA contribution of up to $5,500 for 2017; $6,500 if you are over 50 by December 31, 2017. There is some limitation so you should check with your tax professional. Below are a few of the requirements:
- Tax filing – married filing jointly
- If the working spouse is covered by a qualified retirement plan, the deductibility of the non-working spouse’s contribution may phase out
Check with your tax professional (or your tax software) to determine if you are eligible for the spousal IRA. Even if it is not deductible, it is still a good way to save money that grows tax deferred for years.