You may be wondering how getting married this year will impact both your partner’s and your own Roth individual retirement accounts (Roth IRAs). The simple answer? It won’t.
The slightly more nuanced response is that, unless your combined income exceeds the Internal Revenue Service (IRS) income limits for Roth IRAs, you will typically be able to make contributions to your Roth IRA together just as you did before. And filing separately or making contributions to your Roth IRA prior to your wedding day will not get you around that.
Yes, a married couple can have 2 Roth IRAs. In fact, there’s no limit to the number of IRAs you can have, meaning you can combine the tax advantages of both a traditional and Roth IRA, or even open more than one of the same type of account. There are several benefits to having more than one IRA.
Benefits of Having Multiple Roth IRAs
There are several benefits to having multiple Roth IRAs:
- Diversification: You can diversify your investments across different Roth IRAs. This can help to reduce your risk and improve your chances of earning a good return on your investment.
- Tax advantages: Each Roth IRA has its own contribution limit, so you can contribute more money to your retirement savings each year. This can help you to reach your retirement goals faster.
- Flexibility: You can withdraw your contributions from a Roth IRA at any time without penalty. This can be helpful if you need to access your money for an emergency.
- Estate planning: You can name different beneficiaries for each Roth IRA. This can help to ensure that your money is distributed according to your wishes.
How to Open a Roth IRA
To open a Roth IRA, you will need to find a financial institution that offers Roth IRAs. You can open a Roth IRA at a bank, brokerage firm, or mutual fund company. Once you have chosen a financial institution, you will need to complete an application and provide some personal information, such as your Social Security number and date of birth. You will also need to choose an investment option for your Roth IRA.
Contribution Limits for Roth IRAs
The contribution limit for Roth IRAs is $6,500 for 2023, or $7,500 if you are age 50 or older. This limit applies to all of your Roth IRAs combined, so you cannot contribute more than $6,500 or $7,500 to all of your Roth IRAs in a given year.
Income Limits for Roth IRAs
There are also income limits for Roth IRAs. For 2023, the income limit for married couples filing jointly is $228,000. If your modified adjusted gross income (MAGI) is above this limit, you will not be able to contribute to a Roth IRA. However, you may still be able to contribute to a traditional IRA and convert it to a Roth IRA later.
There are many benefits to having multiple Roth IRAs. If you are considering opening a Roth IRA, be sure to do your research and choose the right financial institution for you.
Check the Roth IRA Income Limits
Getting married won’t normally affect your Roth IRA. You can continue to make regular contributions after getting married if you were both doing so before. You will need to verify the Roth IRA income limits for your filing status, which is the only complicating factor. Here are the limits:
| Do You Qualify for a Roth IRA? | ||
|---|---|---|
| Category | Modified Adjusted Gross Income (MAGI) Range for 2022 Contribution | Modified Adjusted Gross Income (MAGI) Range for 2023 Contribution |
| Married and filing a joint tax return or qualifying widow(er) | Full: Less than $204,000 Partial: From $204,000 to less than $214,000 | Full: Less than $218,000 Partial: From $218,000 to less than $228,000 |
| Married, filing a separate tax return, lived with spouse at any time during the year | Full: $0 Partial: Less than $10,000 | Full: $0 Partial: Less than $10,000 |
| Single, head of household, or married filing separately without living with spouse at any time during the year | Full: Less than $129,000 Partial: From $129,000 to less than $144,000 | Full: Less than $138,000 Partial: From $138,000 to less than $153,000 |
Source: Internal Revenue Service
Remember that this is your status on the final day of the U S. tax year (and calendar year)—Dec. 31—that counts. Even if you got married on Dec. 30, you will be considered married in the eyes of the IRS.
Married individuals typically file their taxes jointly, so make sure to look at that row in the above table. If your combined income (or, more specifically, your modified adjusted gross income (MAGI) (E2%80%94) is less than the entire amount, you may make contributions up to 20100% of your income or the Roth IRA contribution limit, whichever is lower. You and your spouse can each contribute the maximum contribution of $6,000 ($6,500 in 2022) or $7,000 ($7,500 in 2023) if you are 50 years of age or older.
If your income is within the partial range, calculate the percentage of the maximum that you can contribute by deducting it from the full level and dividing the result by the phaseout range.
You will not be able to make contributions to your Roth IRA for that year if your combined income exceeds the cap.
When you get married, make sure your combined income is within the Roth IRA contribution limits. If you surpass the contribution limit, you will be penalized 6% of the excess amount every year until the error is corrected.
What Happens to My IRA When I Get Married?
The “individual” in an IRA is represented by the letter I, and the account remains unchanged even after marriage. However, after marriage, each spouse is able to make contributions to their own IRA up to the annual maximum.
Can My Spouse Have a Roth IRA?
FAQ
Can a married couple have two Roth IRA accounts?
Can each spouse contribute $6000 to Roth IRA?
What is the Roth IRA limit for married couples?
|
Single Filers (MAGI)
|
Married Filing Jointly (MAGI)
|
Maximum Contribution for individuals under age 50
|
|
under $146,000
|
under $230,000
|
$7,000
|
|
$147,500
|
$231,000
|
$6,300
|
|
$149,000
|
$232,000
|
$5,600
|
|
$150,500
|
$233,000
|
$4,900
|
What happens if I have two Roth IRAs?
Can a married couple contribute to a Roth IRA?
However with joint filers each individual has their contribution limits defined by the household’s overall income. A married couple with combined earnings over $228,000 cannot make any contributions to a Roth IRA. (A 4% change in earnings is the difference between maxing this plan out and not getting to use it at all.)
Can a spouse use a spousal Roth IRA?
Typically, individuals need to earn income to contribute to a traditional individual retirement account (IRA) or a Roth IRA. However, if you’re married, you can use a spousal Roth IRA to boost your retirement savings potential—even if only one spouse works for pay. An IRA is an excellent tool for retirement savings.
Will getting married affect my Roth IRA?
Normally, getting married won’t affect your Roth IRAs. Both of you can keep contributing as you were before—up to $6,000 in 2022 ($6,500 in 2023) or $7,000 if age 50 or older in 2022 ($7,500 in 2023). The exception to this is if your joint income is now higher than the income limits for Roth IRAs set by the IRS: $204,000 in 2022; $218,000 in 2023.
How much can a spouse contribute to a Roth IRA?
In a household with two earners, each individual can make their maximum allowed contributions to a retirement account. For example, in a household below the cap, each spouse can contribute $6,500 per person to their Roth IRA.