Q: I retired in 2006, but my wife is still working. I'm now 66, and my wife is 62. We both have IRAs and we file a joint tax return. Can we both still contribute to our IRAs this year?
A: Yes. Since you qualify for a "spousal IRA" and you're both over age 50, you have until April 15 to jointly contribute up to $12,000 to your IRAs (assuming either of you earned at least that much in compensation during the year). That maximum $12,000 contribution can be divided among your IRAs in any manner in which you see fit as long as no more than $6,000 is allocated to either account. You have until your tax return due date to make the annual contribution.
TIP: To delay mandatory distributions from the IRA, allocate more of the contribution to the younger spouse.
