18 Nov Can my working spouse set up an IRA for me?

Q. If I am retired on pension and Social Security, can my working spouse set up a Roth IRA and fund it for me?
— Wanting to save more

A. Yes.

First, your pension and Social Security income are not considered earned income.

But if your spouse is working, she indeed has earned income.

And you must have earned income to be eligible to contribute to a Roth IRA, said Bill Connington of Connington Wealth Management in Fairfield.

“An exception to this rule is a Spousal IRA, which allows someone with earned income to contribute on behalf of a spouse who doesn’t work,” Connington said.

So your working spouse can contribute to both her own IRA and one for you, provided she has enough earned income to cover both contributions, he said.

Just make sure her earnings don’t exceed the limit for a Roth. You can learn more about that here. If she earns too much, you always have the option of a traditional IRA.

Happy saving!

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This story was originally published on Nov. 18, 2019.

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