One of the big hits you take in deciding to stay-at-home involves money. Not only are you giving up that 2nd income (assuming you worked before), but in many cases you are also giving up retirement savings and pensions plans that were provided through your company. Fortunately it doesn't mean that you are going to be totally on your own when it comes time to retire.
A nonworking spouse (that would be you) can contribute up to $5,000 per year to an IRA.
Some things to remember:
- You must file your taxes jointly.
- Your working spouse must make enough money to cover the amount contributed.
- There is not an actual Spousal IRA (though some financial institutions may label it as such), Spousal IRA simply refers to an IRA/Roth IRA that is contributed to by the opposite spouse.
- There is a cap on the amount of money your spouse makes. If he is making over a certain amount (currently $169,000) then you can not contribute to a spousal IRA.
If you're interested in more information regarding Spousal IRA's please check out the links below. Each one provides great information and advice.
Helpful links on IRA's:
Q & A on Charles Schwab - More in depth information regarding tax deductions and limitations
IRS - IRA information
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