Tax Guy: How to take advantage of spousal IRAs

Whether you’re a stay-at-home mom or dad or just taking some time off work, you should not take a break from saving for retirement. And thanks to more generous federal income tax guidelines, it’s now easier than ever to keep that nest egg growing. Here’s what married joint-filing couples need to know, whether one or both spouses work.

The nonworking spouse

A nonworking spouse can make a deductible IRA contribution of up to $6,000 for 2019 ($7,000 if age 50 or older as of Dec. 31, 2019) as long as the couple files a joint return, and the working spouse has earned income that equals are exceeds the sum of the nonworking spouse’s contribution plus the working spouse’s contribution.

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