Dice Financial Services Group

1716 N. Sanborn Blvd, PO Box 790 Mitchell, SD 57301

Phone: 605-996-7171

Toll-free:  800-658-3603 


May/June 2019

Retirement Savings for Non-working Spouses

Article Image

To build retirement savings and Social Security benefits, you generally need the types of earned income from which payroll taxes and retirement plan contributions come. But even if you never earned income, you may still qualify for certain spousal benefits.

Spousal IRA
While most tax-qualified retirement plans require owners to offset their contributions with earned income, a spousal IRA allows contributions in the names of spouses with little to no earned income. This is especially important for parents who interrupt their careers to start and care for families at the expense of income parity when they return to work.

Because women may earn less, on average, than men for doing the same work, women are often lagging in retirement readiness. A spousal IRA can help a lower-paid or even non-working spouse save for retirement, as long as the working spouse has enough income to offset contributions from both spouses.

The Rules
If you qualify by the same income limits and age restrictions that govern all IRA accounts and you file a joint federal income tax return, a spouse without any earned income can still contribute to either a traditional or Roth IRA. In 2019, the annual contribution limit is $6,000, plus an extra $1,000 if at least age 50.

Income limits, age restrictions and access to an employer-provided qualified retirement plan will determine the tax deductibility of a spousal IRA. However, owners of any IRA get to enjoy tax-deferred growth potential. Owners of traditional IRAs typically pay ordinary income tax on retirement withdrawals, while qualified distributions from Roth IRAs are tax-free.

In Retirement
Spouses with little to no lifetime income can also qualify for spousal Social Security benefits. Spousal benefits generally are half of the spouse’s benefit at full retirement age, which is 66 this year and increasing to 67 over the next few years.

If your spouse begins receiving benefits before or after full retirement age, your spouse’s — and your — monthly benefit will vary depending on when benefits begin. If you take benefits before your spouse’s full retirement age, Social Security reduces the benefit permanently. If you take benefits after this age, benefits permanently increase


Enter your Name and Email address to get
the newsletter delivered to your inbox every month.


Enter your Name, Email Address and a short message. We'll respond to you as soon as possible.

Securities offered through: Royal Alliance Associates, Inc. [ RAA], Member FINRA/SIPC. Insurance Services offered through Dice Financial Services Group. Advisory services offered through Dice Financial Investment Advisory, a registered investment advisor. 
Thomas J. Dice, Jerauld Garry, Michael LeBrun, Jacquelyn Johnson, and Jesse Tolsma are registered representatives of and offer securities products and services through RAA. In this regard, this communication is strictly intended for individuals residing in the states of AZ, CA, CO, CT, FL, GA, IA, ID, IL, IN, KS, MN, MO, MT, NC, ND, NE, NY, OK, OR, SC, TX, UT, VA, WA, WI, and WY.  No offers may be made or accepted from any resident outside the specific states referenced.
Thomas J. Dice, Jerauld Garry, Michael LeBrun, Jacquelyn Johnson, and Jesse Tolsma are also separately registered as investment advisor representatives under Dice Financial Investment Advisory, a registered investment adviser, offering advisory services in the state of SD.
Thomas Dice offers additional investment advisory services through RAA.
Fixed and/or Traditional Insurance Services offered through Dice Financial Services Group.
Listed entities are not affiliated.
The broker-dealer [BD], investment advisor, BD agent or investment advisory [IA] rep in question may only transact business in a state if first registered, excluded or exempted from state broker-dealer, investment advisor, BD agent or IA rep registration requirements, as may be; and follow-up, individualized responses to persons in a state by such broker dealer, investment adviser, BD agent or IA rep that involve either the effecting or attempting to effect transactions in securities, or the rendering of personalized investment advice for compensation, as may be, will not be made absent compliance with state broker-dealer, investment adviser, BD agent or IA rep registration requirements, or an applicable exemption or exclusion. For information concerning the licensure status or disciplinary history of a broker/dealer, investment advisor, BD agent or IA representative, a consumer should contact his or her stated securities law administrator. For securities information a consumer may also contact the Financial Industry Regulatory Authority (FINRA) at the following toll-free number: (800) 289-9999 or their web address 

  Dice Financial Services Group and LTM Marketing Specialists LLC are unrelated companies. This publication was prepared for the publication’s provider by LTM Client Marketing, an unrelated third party. Articles are not written or produced by the named representative.

The information and opinions contained in this web site are obtained from sources believed to be reliable, but their accuracy cannot be guaranteed. The publishers assume no responsibility for errors and omissions or for any damages resulting from the use of the published information. This web site is published with the understanding that it does not render legal, accounting, financial, or other professional advice. Whole or partial reproduction of this web site is forbidden without the written permission of the publisher.