Michelle Buria, Certified Financial Planner and Managing Director of Choreo, breaks down that spousal IRAs work like traditional IRAs- but it’s used in for a spouse that doesn’t work.

Some considerations we need to take into account is that one spouse does need to have an earned income, the couple must file a joint tax return, and there are income limits.

The maximum annual contribution limit is $7,000, or $8,000 if you’re 50 or older.

“When you want to retire, there’s no loan on retirement. You need to have money set aside, so how do you do that? It’s not gonna happen at the last minute,” Michelle says. “You want to make sure that you’re contributing right away because then that money coundpounds on itself over time. “