Spousal IRA

A "Spousal IRA" is a rule which allows the employed spouse to make an IRA contribution on behalf of a non-working spouse or a spouse who has little income. This rule allows you to rely on your spouse's income when you make contributions. These contributions are referred to as "spousal IRA contributions".

As a general rule, your IRA contribution for any year can not exceed your qualifying income for the year. However, if you file jointly with a spouse who has qualifying income, you don't need qualifying income of your own. Other rules also apply as well so you should clarify your situation with your financial institution before making contributions.

An interesting point on a Spousal IRA is that the source of the money really does not matter. Your spouse can suppy the money or you can get it from another source.