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July 26, 2013 11:16 am
Spousal IRAs Retitled
A working spouse can contribute to an IRA on behalf of a nonworking spouse to grow the retirement savings of the couple. The contributions cannot exceed the earned income of the working spouse. In honor of a former U.S. senator, the spousal IRA has been renamed the Kay Bailey Hutchison Spousal IRA. The change in name does not change the rules for spousal IRAs in any way.
As a reminder: For 2013, the maximum IRA contribution per spouse is $5,500, or $6,500 if you’re 50 or older by the end of this year.
Source: H.R. 2289
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Tax Glossary
Estimated tax
Advance payment of current tax liability based either on wage withholdings or installment payments of your estimated tax liability. To avoid penalties, you generally must pay to the IRS either 90% of your final tax liability, or either 100% or 110% of the prior year’s tax liability, depending on your adjusted gross income.
