Q.: I am a fully retired school Principal. My wife is still working. She earns $132,000 a year. Based on my wife's earnings, can she fund a Roth IRA for me?

A.: Yes, she can. A Spousal IRA (traditional or Roth or a combination of the two) is funded by the working spouse on behalf of the spouse who is not working. For 2021, the maximum contribution is $6,000 ($7,000 if age 50+). The use of the spousal IRA strategy allows married couples, filing jointly, to contribute a maximum of $12,000 per year, or $14,000 if they are both age 50+. These rules do not apply to married couples filing separately.

Mr. Frank is a fee-only Retirement Financial Planner and a retired city high school Teacher of Accounting. He can be reached by phone at (732) 536-9472, or via email at rollover@optonline.net.

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