I saw online that I am allowed to open up a Roth IRA account in my husbands name who is currently incarcerated and I'm allowed to make contributions to it. Is that true?
01187
1 Replies
Bsch4477
Level 15
Oct 12, 2021 10:45:15 AM
There are a number of important rules to remember about spousal IRAs:
The account owner does not change, no matter who funds the account.When contributing to spousal IRAs, each spouse remains the named account owner of their IRA, independent of where the contributions come from. Decisions about asset allocation, beneficiaries and withdrawals belong solely to the spouse who owns the IRA.
Married couples must file a joint tax return to be eligible. Couples who file their taxes separately are not eligible for spousal IRA contributions.
Total marital income is considered for Roth IRA contribution limits.Direct contributions to a Roth IRA are limited by maximum income thresholds—contributing to spousal IRA raises the Roth IRA threshold for a couple. A married couple with a modified adjusted gross income (MAGI) of up to $198,000 in 2021 is eligible to contribute the full amount to each of their Roth IRAs. Couples with MAGI of $198,000 to $208,000 can make partial Roth IRA contributions.
There is no age limit on spousal IRA contributions. As long as at least one member of the couple is earning income, you can contribute to your IRA no matter how old you are.