Spousal IRA

I have an IRA in the form of an annuity. My wife will be funding a Spousal IRA this year. She is unemployed and over 50 so she is elgible for $6500. I have an adjusted gross income less than $80000 per year and pay into teacher retirement in the state of Ohio. My questions are as follows:

Will her IRA have any impact on my IRA in terms of future indirect rollovers of either IRA (The one indirect IRA rollover rule per year) (filing jointly etc)

Can she place IRA in the form of a 72 month CD and cancel the following year adding another $6500 and again the following year etc. without IRS penalty. (There are no early withdrawal penalties at credit union so she can maximize return under one IRA number each year and only one CD.



  • SInce IRAs are entirely individual accounts, you each have one permitted 60 day rollover within a 12 month period, therefore her IRA will not affect your IRA rollover options. She is eligible to deduct her TIRA contribution as long as your joint MAGI is anywhere close to what you indicated.
  • There is no tax or IRA penalty unless there is a distribution from the IRA. Funds can probably be moved in the CU by direct transfer to different CDs. Such transfers are unlimited in number and not reported on Form 1099R or your joint return.
  • Sounds odd that she can terminate the IRA CD early and purchase a new 72 month IRA CD without any CU penalty.


Add new comment

Log in or register to post comments