Say nr Sa a y Senior Seni by Jim Miller What Is a Spousal IRA? Dear Savvy Senior, What can you tell me about spousal IRAs? My spouse and I are in our 50s and are looking for ways to boost our retirement savings. My wife is a homemaker and caregiver, and works part time too, but her income is very small. Need a Boost Dear Need, Saving for retirement can be very diffi cult for married spouses who stay home to care for family or otherwise have scant income. But there is a little-known tax break off ered by the Internal Revenue Service – known as a spousal IRA – that can help them, and their partner save for retirement. Spousal individual retirement accounts allow a working spouse to contribute to a nonworking or low-earning spouse’s retirement savings. They can be set up as a traditional IRA or Roth IRA, which allow couples to save for retirement on a tax-deferred or tax-free basis. How They Work A spousal IRA isn’t a unique type of IRA or a joint account, but instead it is a separate IRA opened and owned in the name of the nonworking or low-income earning spouse. This will not only help boost your family’s overall retirement savings, but it provides non-working/low-earning spouses access to their own funds in an unforeseen event like the death of their spouse, divorce, or illness. To qualify for a spousal IRA, spouses must fi le taxes jointly as a married couple, and the working spouse must have enough earned income (taxable income such as wages, salary, bonuses, commissions, and self-employment income) to cover contributions for both parties. The process of opening a spousal IRA is also no different from opening a regular IRA. Brokerage fi rms and many banks and other fi nancial institutions off er IRAs. In 2025, each spouse under age 50 can contribute up to $7,000 annually to an IRA, or $8,000 annually for those over age 50, but the total contribution can’t exceed the taxable earned income reported on the couple’s tax return. Otherwise, the IRS limits contributions based on their earned income. Roth or Traditional? Deciding whether to open a Roth or traditional IRA depends on your tax situation and fi nancial goals. Traditional IRA contributions typically are tax deductible the year in which they are made and are beneficial during high-income earning years. Contributions grow tax-free until they are withdrawn during retirement. Roth IRA contributions aren’t tax deductible the year in which they are made, but qualifi ed contributions plus any earnings grow taxfree and are withdrawn taxfree in retirement as long as the couple follows IRS rules. Among them: you must be 59½ and have held your Roth IRA for at least fi ve years before you withdraw investment earnings tax-free and penalty-free. There are also penalties for withdrawals on traditional IRAs before age 59½ unless the owner qualifies for an exception, and he or she must begin taking the annual withdrawals known as required minimum distributions (RMDs) from these plans the year he or she turns 73 (or 75 beginning in 2033). Roth IRAs don’t require RMDs until after the death of the owner. However, benefi ciaries of a Roth IRA generally will need to take RMDs to avoid penalties, although there is an exception for spouses. For more information on the IRS rules of both traditional and Roth IRAs see IRS. gov/retirement-plans/traditional-and-roth-iras. Send your questions or comments to questions@savvysenior.org, or to Savvy Senior, P.O. Box 5443, Norman, OK 73070. nior ior THE EVERETT ADVOCATE – THuRsDAy, July 3, 2025 SPORTS | FROM PAGE 16 ball as it was heading over the fence to end the game. “If (Kotsiopoulos) connected on that grand slam, we still would have been trailing by two, but we would have had the momentum on our side with the heart of the batting order coming up,” said Blatt. Battle, Salie and Kotsiopoulos all had hits for Everett against Charlestown. On the mound, Kotsiopoulos pitched five solid innings, throwing the requisite amount of 85 pitches – Little League pitch count rules. The Townies scored three runs each off Kotsiopoulos in the third and fi fth innings, while still fanning seven times against him. Baca followed him to the hill in the sixth inning, and struck out three sandwiched around a single and a run. The Everett boys showed off their speed in this game with fi ve stolen bases from the likes of Battle, Salie, Papa, Blatt and Yan. Everett had to beat Dorchester on Monday night to remain alive in the tournament, and if that was the case they were back on the diamond on July 2. Another win gives them a few days off to celebrate the Fourth of July holidays, before resuming the road to Williamsport on July 7. Opponents beyond Dorchester to be determined, as District 12 teams begin eliminating each other. O Page 19 OBITUARY Walter A. Lara f Everett . Passed away on June 23rd at 68 years of age. Walter was a native of San Vicente, El Salvador and immigrated to the United States in 1979 settling in California. He eventually came to Massachusetts where he met his wife Mabel. They made Chelsea their home and eventually they moved to Everett where they had been residing for the past 13 years. Walter was proud to become an accountant. He had the privilege of owning and operating his own business named Walter’s Financial Services for several years. Walter also had a deep devotion to his faith and his church. He became a Pastor at the First Baptist Church in Chelsea, and he recently celebrated his 10-year anniversary on June 18th. When he was younger, he spent his spare time enjoying music, playing soccer and he loved to spend time in the water, whether it be in a swimming pool or at the beach. He is the devoted husband of Mabel Bardales Lara of Everett. Beloved father of Blanca, Balkis, Walter Jr., Jacqueline, Oscar, Daniel, Irma, Jorge, James, Michelle and Janell. Cherished grandfather of 28 grandkids and 2 great grandchildren. He is the dear brother of Wilfredo, Esmeralda, Arely, Maria, Carlos and the late Cesar. He is also lovingly survived by many nieces, nephews and cousins. Family and friends were invited to attend Visiting Hours on Sunday, June 29th in the Vertuccio Smith & Vazza, Beechwood Home for Funerals, Revere. Funeral Services were held on Monday, June 30th in the First Baptist Church, Chelsea. Interment followed in Woodlawn Cemetery, Everett.
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