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

Home equity debt

Debt secured by a principal residence or second home to the extent of the excess of fair market value over acquisition debt. An interest deduction is generally allowed for home equity debt up to $100,000 ($50,000 if married filing separately).

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