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I would like to set up an IRA account for my non-working spouse. According to your "Foolish Retirement Plan Primer" this is called a "Spousal IRA". It states that the non-working spouse has to make less than $250/year during the time the contributions (max $2,000/year) take place. So long both spouses file a joint tax return for that year. These are my concerns:

1. Do we need to specifically ask for a "Spousal IRA" when opening this account with a financial institution? In other words, are the forms different from those of a regular IRA? And if so, will most institutions know what I am talking about?

2. What happens if the non-working spouse earns over the $250/year limit? Does this make the Spousal IRA invalid? If so, can it then be converted or rolled into a regular IRA in order to avoid taxes and penalties?

I appreciate any help you can give me on this matter. We want to do this right from the beginning.

Thank you so much!
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