Four IRA Benefits
‘Tis the season for weddings! You’ve probably heard the saying that marriage has its benefits. That’s particularly true for IRA rules. There are IRA benefits for married couples that are not options for single folks.
1. Spousal Contributions
Generally, to make an IRA contribution, you must have compensation (typically W-2 income or net earnings from self-employment). If you are single and have no compensation, you are out of luck. However, a special rule applies for those who are married. You can use your spouse’s compensation to fund an IRA contribution. This is a great benefit if you are a stay-at-home parent. If your spouse has enough compensation, you and your spouse can each fully fund an IRA for the year. If you are age 50 or over this year, you can each contribute $6,500 to your respective IRAs for 2016.