Can Spouses Combine Roth IRAs?

After age 50, you and your spouse can make catch-up payments to your plan.

An IRA stands for Individual Retirement Account, so you cannot legally combine your Roth IRA with your spouse's IRA. There is one exception to this rule. If your spouse dies and you are named as the beneficiary of the account, you can combine the two accounts into one without any tax consequences or penalties.

Roth IRA Basics

When you open a Roth IRA, money you invest inside the account is allowed to grow tax free. Unlike a traditional IRA, money you add to your Roth IRA has already been taxed, so you do not have to pay taxes when you begin to withdraw after reaching retirement age, according to MoneyChimp.com.

Inherited Plans

You can combine an inherited Roth IRA into one account if your spouse dies and leaves you the plan. If you inherit a plan from someone other than your spouse, you cannot legally combine it with your account or make any additional contributions to the plan, according to Fairmark.com.

Opening a Roth IRA For Your Spouse

You cannot legally open a Roth IRA for your spouse, but your spouse can open an account of his own even if he does not work or earn an income, according to Your-Roth-IRA.com. Because a Roth IRA is for individuals, you cannot open a joint account with your spouse. If your spouse opens his own account, but you fund the account with your income, it is legally referred to as a spousal Roth IRA. There is one caveat you need to consider. In order for your spouse to open a spousal account, you must file a joint tax return.

Spousal Contributions

The contributions your spouse can make to her spousal Roth IRA are no different than the limits you have on your own account. If you are both under age 50, you can each contribute up to $5,000 a year to your account. If you are over age 50, you can each contribute up to $6,000 a year to your plans.

References

• Your Roth IRA: A Spousal Roth IRA For Your Spouse
• Fairmark; Inherited Roth IRA; Kaye A. Thomas; January 2008
• 401k Lookup; 401k Retirement Plans - Contribution Limits, Rules, Contributions & Distributions, Rollovers, IRS Forms, Roth 401k, Roth IRA and More; December 2010
• Money Chimp: Understanding the Roth IRA