For non-working spouses, it’s often a case of “out of sight, out of mind.”
And what’s forgotten is their own retirement security.
Once the non-working spouse is out of the workforce, they usually neglect to fund their own retirement accounts.
Many people don’t realize that even if you are not holding down a job, you are eligible to put money into your Traditional or Roth IRA, assuming certain conditions are met.
We’ve already told you the deadline to fund your IRA is April 18, 2017.
So you still have a few weeks left to take advantage of this special provision.
If you’re a stay-at-home spouse, this is a great way to capture more potential tax deductions, beef up your retirement savings, and make sure your own retirement fund doesn’t get left behind in the dust.
Here’s the lowdown: spouses who do not work are still eligible to contribute to a Traditional or Roth IRA if the working spouse makes enough to cover both contributions (up to $5,500 each, or $6,500 each for workers age 50 or over).
Roth contributions don’t give you an immediate deduction, but grow tax free. Traditional IRA contributions can net you an immediate tax break, but you’ll pay tax down the road when you withdraw the funds.
Which is best? It depends on your income and tax eligibility, so ask your tax preparer or financial advisor once you’ve got a handle on your income numbers for last year.
This is a “use it or lose it” opportunity, so don’t delay.
The sad truth: The average American family has less than $100,000 saved for retirement, so every little extra bit of retirement savings helps!