In short
A spouse with little or no earned income can contribute to their own individual retirement account (IRA) based on the working spouse's earnings, if the couple files a joint return.
Key takeaways
- Each spouse can contribute up to the annual limit.
- Combined contributions can't exceed the couple's taxable compensation.
- Deductibility of traditional contributions depends on income and workplace plan coverage.
Where it's tested
TCP: Retirement Planning Strategies — study notes, a five-minute revision sheet and practice questions.
Practise: 3 questions
Question 1 of 3 · 0 answered
A married couple files jointly. One spouse has no earned income. Can a contribution be made to an IRA for the non-working spouse?