What is a Spousal IRA?
Spousal IRAs address the retirement needs of single income families. Spousal IRAs recognize the fact that even if only one spouse earns wages, the non-working spouse still contributes to the household by raising children, taking care of the family home and other domestic responsibilities. Congress created Spousal IRAs so that housewives and househusbands can have an individual retirement account of their own.
How Does it Work?
Generally speaking, the working spouse makes contributions to his or her spouse’s IRA account within the legal limit. Currently, the yearly limits are $5,000 for people under the age of 50 and $6,000 for … Read more at 2011 Taxes.