Married/Getting Married - What You Need to Know About Spousal IRAs

Updated: Feb 16




Spousal IRA's can be a great savings tool that many investing families are not aware of - particularly when planning with high net worth couples where the primary wage earning spouse can't make tax-deductible IRA contributions or Roth IRA contributions due to income limits and may already have tax-deferred IRA dollars. This scenario complicates any Roth conversion and brings the Pro-rata rule into play; making it impossible to convert just the non-deductible IRA money (after tax dollars) - causing a taxable event because a pro-rata % of the tax-deferred IRA money must also be converted. This is where a Spousal IRA for a spouse with no tax-deducible (deferred) IRA funds could possibly be an option for consideration.