An individual retirement arrangement under which an IRA is established for a non-working spouse and is funded with contributions from the working spouse. Spousal and non-spousal IRAs are subject to combined annual contribution limits and must meet specific requirements. Contributions to a traditional IRA may be fully or partially deductible, depending on your circumstances. Under the SECURE Act, in most circumstances, once you reach age 72, you must begin taking required minimum distributions from a spousal IRA. Withdrawals are taxed as ordinary income, and if taken before age 59½, may be subject to a 10-percent federal income tax penalty. You may continue to contribute to a Traditional IRA past age 70½ under the SECURE Act as long as you meet the earned-income requirement.
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