A Spousal IRA is a type of retirement account that is available to someone that is married to a working spouse, but does not work themselves. This type of account is just as important as a regular IRA account due to the fact that it offers tax deferrals.
Those that don’t work do not have the same retirement options available, such as an employer sponsored 401k. The Spousal IRA can bridge this gap.
There are no other retirement planning programs available to non working spouses that allow tax deferred contributions, which makes it a valuable aspect of retirement when only one spouse works. Another source of income for a non-working spouse is Social Security; though they will have no benefits themselves, they can collect a percentage of their spouse’s Social Security benefits after they reach the age of retirement.
We at the Mendel Law Firm can help you uncover your options and choose the strategy that is best for you.