How a Spousal IRA Creates Retirement Security for Non-Working Spouses

Episode 37 of Estate Planning with Fexingo explores the Spousal IRA, a powerful but underused tool that allows a working spouse to contribute to an IRA in the name of a non-working spouse. Lucas and Luna break down the 2026 contribution limits ($7,000 for those under 50, $8,000 for 50+), the key rule that the couple's combined earned income must equal or exceed the total contributions, and the five-year holding period for Roth IRAs. They use a real-world example: a couple where one spouse earns $120,000 as a marketing director and the other is a stay-at-home parent aged 42. By maxing out a spousal Roth IRA each year, that non-working spouse could accumulate over $500,000 by retirement, assuming a 7% annual return. The episode also clarifies that Spousal IRAs aren't a separate account type—just a contribution strategy—and warns against common mistakes like failing to designate beneficiary correctly or forgetting the pro-rata rule for conversions. Perfect for listeners who want to ensure both partners have retirement assets regardless of employment status. #SpousalIRA #RothIRA #IRA #RetirementPlanning #NonWorkingSpouse #StayAtHomeParent #EstatePlanning #WealthTransfer #Finance #PersonalFinance #RetirementSavings #TaxAdvantaged #Fidelity #Vanguard #Schwab #FexingoBusiness #BusinessPodcast #EstatePlanningWithFexingo Keep every episode free: buymeacoffee.com/fexingo