Can an IRA be Co-Jointly Owned? Oh…Don’t Ask!

Many married folks have an IRA….whether it is a Traditional IRA, Roth IRA or SEP. Being married and wanting to establish a self-directed IRA, many married individuals want to combine each of their IRAs into one IRA account or have their respetive IRA co-jointly owned by the other spouse as well. This is not permissible and the following video will provide you some potential options you may have.

While spouses cannot co-jointly own their spouse’s IRA, the spouses can elect to have their respective IRA fund an IRA LLC which can have, as its members, the IRA of each spouse. Let’s face it, if a married couple is wanting to utilize each of their respective retirement plan funds to maximize their “buying” ability, this is one option…provided the plan is established correctly under all IRS regulations.

Now, let’s switch gears a bit. If the husband and/or wife qualify for a 401K plan, then it might be permissible for each spouse to rollover their respective funds (e.g., non-Roth IRA funds) into one 401K plan where each individual is a participant in the plan and where the assets of each participant is separated for accounting purposes. This is a significant benefit of the 401K vs. the IRA when it comes to “buying” potential.

As always, the information provided is for educational purposes and is not, nor should it be interpreted as, any form of tax, legal, financial or investment advice. You must always secure the services of your respective professional in such areas.