If you file a joint return and your spouse does not work, you can fund a Traditional or Roth IRA for your spouse. To be eligible to fund a Spousal IRA, the following requirements must be met:

• The couple must be married
• One spouse must have compensation or earned income
• A federal tax return must be filed
• An IRA must be established for the non-compensated spouse
• The recipient of the spousal IRA must be under age 70 1⁄2

If you meet the eligibility rules, the spousal contribution is the same as for a Traditional IRA, up to $4,000 annually through, 2007 and $5,000 in 2008. The spousal contribution is made to the non-compensated spouse’s IRA while the compensated spouse follows the regular IRA rules for his or her own contribution to a separate IRA. The contribution may be fully tax deductible if your joint Adjusted Gross Income is below $80,000 in 2007 and beyond. As with a Traditional IRA, your maximum deductible amount will be phased out when your joint income exceeds these amounts.