IRA Myths
IRA’s are a fabulous way to save
money. While there is a ton of information available about investing in IRA’s,
there are three myths that I hear from mothers over and over again. These myths have
stopped many mothers from investing in IRA’s, so please read on!
Stay at home spouses are ineligible
to contribute to an IRA. – False! If you file joint tax returns, the spouse
who stays home is eligible to contribute
to an IRA based on the working spouse’s income. The same rules that apply to the
spouse who earns the income are applied to the spouse who stays home, and the contribution
is fully tax deductible until your joint Adjusted Gross Income is $150,000 or higher.
Minors may not open an IRA.
– False again! The only thing that is required for a minor to open an IRA is taxable
income. Many parents pay their children to help in the family business, even if it’s
just sweeping the floors and taking out the trash, or children may have other outside
income from working somewhere.
You must contribute to an IRA
before December 31st – Guess what? Wrong again! You can
contribute to an IRA up to the date you file your taxes. So this year you have until April
15, 2002 to contribute
to an IRA. This means you can take your spouse’s end of year bonus and invest it
in your IRA when all the financial institutions reopen on January 2nd!
So now that you know the real deal about
investing in an IRA, do yourself a favor and open
one today!
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