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If you’re married and in a Single-Income Household, A Lesser-KNOWN retirement strategy Cold Boost Your Nest Egg – and there’s still time to use it for 2024.
A spousal individual retirement account is a separete roth or traditional Ira for the non-surround spouse. With this strategy, two Iras can be maxed out annual with enough income from the working spouse. The deadline for 2024 contributions is April 15.
“Spousal Iras are a game changer for Married Couples Looking to Build Retirement Savings and Manage Their Lifetime Tax Burden,” Said Certified Financial Planner Jim Davis, Partner at AsPene You Wort, Texas.
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For 2024, The Ira Contribution Limit is $ 7,000, plus an extra $ 1,000 catch-up contribution for investors age 50 and older. The caps are the same for 2025.
That means an older married couple with sufficient earned Income Cold Save Up to $ 8,000 per ira for 2024 before the April 15 tax deadline. They’ll have until Next Year’s tax due date for 2025 Ira contributions.
“For many, it’s a simple yet powerful step toward achieving long-term goals,” Davis said.
To qualify, you must file taxes jointly and your combined Ira contributions can’t exced “Taxable compensation” reported on your tax return, according to the Irs. The strategy also also work if one spouse is unemployed with more enough enough 2024 earnings to contribute to an Ira on their own.
Roth Iras are funded with after-tax dollars and offer future tax-freeth, but there’s an Income LimitTraditional Iras Cold Provide an upfront tax breakDepending on your Income and Workplace Retirement Plan Participation.
‘Leveling the playing field’
Another perk of spousal Iras is the ability to create or boost retirement saving Abundance.
“This Helps Accru Retirement Savings for the Family Cfo Who May Not Be Employed Outseide The Home, or is currently undermpolyed,” She said.
In a divorce, it’s often emier to split retirement accounts when the non-earning spouse has assets in their name, noted petrowski, who is also a certified divorce financial analyst.
“This is a great way to achnowledge their unpaid economic contribution to the household,” She said. “It really help with leveling the playing field in these conversations.”
