How does Spousal IRA work?

Forum|Forum|3 years ago
November 16, 2022
2 replies
15 views

My wife did NOT (and will not) work this 2022 year. But I made Traditional IRA contributions ($1000) in Spring 2022. Do I need to "transfer" the $1000?

Or does "spousal ira" apply. Can I contribute $4000 to my "traditional" and add her $1000.

John-H2021

Level 6

Hello,

Yes you can contribute to the spousal IRA and also to your own IRA.

Total contributions are the lesser of $6,000 or the total of your earned income

Here is a link with additional details

https://blog.turbotax.intuit.com/income-and-investments/401k-ira-stocks/can-i-make-spousal-ira-contributions-for-retirement-46326/

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Bvr503Author

Level 2

To begin, thank you for your initial response (on Spousal IRA).

My follow-up concerns are:

* Can we contribute (leave the already contributed $1000) to the "current, already opened, and with $1000 2022 contribution" Traditional IRA?

* Or do I need to open a brand new "Traditional IRA and designated it as the Spousal IRA"?

* Is a "Spousal IRA" a specific legal/IRS term and account? Or just an IRA for a "spouse"?

Basically, can I leave our existing $1000 in my spouse's Traditional IRA? Or do I need to move/transfer?

John-H2021

Level 6

Hello,

You can leave everything as it is, no need to open another account or transfer money

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Hal_Al

Level 15

"Spousal IRA" simply means that a person may use her spouse's earned income to qualify to make an IRA contribution. The IRA is just a regular IRA in her name. Nowhere is it designated as "spousal". You can make a $6000 contribution to her IRA and a $6000 contribution to your IRA, as long as you have at least $12,000 (6K + 6K) of earned income (wages or net self employment).