Spousal Inherited IRA: Take It or Leave It

If you are married, you may have discussed with your spouse what you plan to do with each others estates should one of your pass before the other. This discussion–and other similar ones–is important and can make the period after the passing of a spouse less difficult than it needs to be. As part of those discussions, you may want to talk about what you both will do with an Inherited IRA, if you or your partner have one. There are really three main options for the spouse inheriting the IRA. The first is to leave the IRA as it Continue reading Spousal Inherited IRA: Take It or Leave It

Is Your Spouse Still Working? Have Them Make a Contribution!

Did you know that if you retire, but your spouse continues to work, that you can still make a spousal contribution to an IRA? And no, you do not need to open another account to start making such contributions. So long as your spouse earns enough income to cover the 2019 contribution limits for the both of you, a spousal contribution to your own Roth IRA can be made. It doesn’t matter who the money comes from–it could be written by you or your spouse–you just need to file a joint federal tax return and your spouse needs to meet Continue reading Is Your Spouse Still Working? Have Them Make a Contribution!

Are You and Your Spouse on the Same Retirement Page?

Retirement can test a marriage, especially if both spouses retire at the same time. Not only will you find yourselves spending a lot more time together, but you may also both have different ideas of what retirement should be. It’s therefore important that you and your spouse have similar ideas regarding what retirement will be. You don’t have to have identical views, but they should be similar enough as to be compatible and not the cause of any serious issues. Getting on the same page doesn’t just happen overnight, either. It takes time and many conversations with your significant other Continue reading Are You and Your Spouse on the Same Retirement Page?

A Creative Way to Avoid RMDs From an Inherited Account

Do you know your options should you inherit an IRA from a spouse? There are often multiple choices regarding what you can do with the money. Furthermore, your options may be impacted by your spouse’s age when they passed, especially if they are under the age of 70½. Your age may also play a factor into your decision. One common option is to roll the IRA money into your own IRA and begin taking required minimum distributions (RMDs) either immediately if you are over age 70½ or when you turn 70½ if you are under that age at the time of Continue reading A Creative Way to Avoid RMDs From an Inherited Account

Calculating RMDs After a Spousal Rollover

The rules behind spousal rollovers of retirement plans following the death of a significant other can be complex and confusing. Depending on the type of retirement plan you are rolling over from, there may be certain rules and qualifications you may have to meet. This blog post isn’t going to cover every type of retirement plan, but will instead focus on the most common, and IRA. One of the most confusing parts of a spousal rollover of an IRA can be figuring out how the required minimum distribution (RMD) is calculated following the exchange of money between accounts. Fortunately, it Continue reading Calculating RMDs After a Spousal Rollover

Aggregating RMDs is Easy, So Don’t Make It Hard!

If you have multiple IRA accounts and are of an age at which you must take required minimum distributions (RMDs), you may want to consider aggregating your RMDs and taking that aggregated amount from one account. Such a practice allows you to take money from the account you want and may be more efficient in regards to your retirement plans. While aggregating may sound easy, that still doesn’t mean there are ways to trip up while doing it. One easy way to trip up is to forget just how many retirement accounts you may have and that you must total Continue reading Aggregating RMDs is Easy, So Don’t Make It Hard!

Stay-at-Home Spouse? You Can Still Have an IRA

It is well known that you need to have income to be able to make IRA contributions. However, if you or your significant other is a stay-at-home parent/spouse, they can still maintain an IRA in the form of a spousal IRA. Spousal IRAs allow a working spouse to make IRA contributions for a non-working spouse who does not have enough earned income to make their own IRA contributions. To qualify for a spousal IRA, the spouses must be legally married (including same-sex marriages), file a joint federal tax return, the spouse receiving the contribution must have less compensation (or no Continue reading Stay-at-Home Spouse? You Can Still Have an IRA

Staying on the Same Retirement Page

Retirement can put a strain on marital relationships. This is not to scare people, but it is the truth. That strain can be felt both while saving for retirement and during the actual retirement. If you and your spouse are not the same page regarding how to save for retirement and what you plan to spend your money on in retirement, you will almost assuredly face friction at some point in the process. Thus, it’s important that you both talk about how you view retirement and make plans that work for the both of you. This planning will require realizing Continue reading Staying on the Same Retirement Page