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Spousal IRA Contribution Limits 2011 2010

Updated on February 28, 2012

Contribute to IRA for Spouse

An IRA is a great way to save money for retirement. All funds held within an IRA grow tax-deferred until withdrawn in retirement. That means that you don't have to pay any of those pesky capital gains taxes or taxes on interest or dividends paid out by bonds or mutual funds.

Can I Contribute Money To An IRA For My Spouse?

Contributions to an IRA account must come from taxable income. That means that a parent cannot make an IRA contribution for a child, for example. For families with one income or where one spouse make significantly more than another spouse, the question often arises over whether or not a spouse can contribute to an IRA for their spouse.

The answer is yes, via a special IRA account allowed by the IRS called a Spousal IRA.

More tax tricks for 2011 are here.

What Is a Spousal IRA?

A spousal IRA is the same as a non-spousal IRA in all ways, except that contributions to a spousal IRA may be made from the taxable income of the spouse.

A spousal IRA can be a Roth IRA or a traditional IRA.

Spousal IRA Rules

IRA Contribution Limits - Spousal IRA 2011

The contribution limits to a spousal IRA for 2011 are the same as the 2010 contribution limits for regular IRA accounts. An annual contribution of up to $5,000 is permitted for everyone. Taxpayers over 50 can contribute an additional catch-up contribution equal to $1,000. That means that IRA account owners over age 50 can contribute $6,000 per year to a spousal IRA or to a regular IRA.

If one spouse is over age 50 and the other is under 50 can I contribute $6,000 to a spousal IRA?

The answer depends on who is over age 50. What matters is how old the account owner is, not how old the spouse who is making the money is.

For example, if the husband is over age 50 and the wife is under age 50, the husband can contribute up to $6,000 to his IRA, while the wife may contribute only up to $5,000 to her IRA, regardless of who earned the income.

Spousal IRA contributions are limited to couples who file jointly. Married filing separately couples may not contribute to a spousal IRA.


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    • Hello, hello, profile image

      Hello, hello, 7 years ago from London, UK

      Very interesting and good advice.