Common Law Marriage – Spousal IRA’s
I have a client in the state of KS who is in a “common law” marriage. My understanding is the state of Kansas does not recognize common law marriages so I would assume that my client would not be eligible for a spousal IRA if something was to happen to either of them? My question is: Does the state of Kansas recognize common law marriages? If so, Can a spousal IRA be used in the even something happened to one of them? We are assuming they are the primary bene on the accounts.
Thanks,
Permalink Submitted by Alan - IRA critic on Tue, 2015-07-21 22:02
The only significance of a spousal IRA is that a contribution can be made for a spouse with no income of their own. If such a contribution is made, the spouse does not have sufficient income of their own, and it turns out that the marriage is not recognized, an excess contribution exists which must be corrected or an annual 6% excise tax paid. They also must be filing jointly for a spousal contribution to be made. Are they filing jointly for their KS return? Was the common law marriage created in KS or in another state?
Permalink Submitted by Joshua Britton on Wed, 2015-07-22 15:46
Not too concerned about contributing to the Spousal IRA.Ex.) Mike and Mary are common law married. they file their tax returns married filing single. Mike unexpectedly passes away. Can Mary roll Mike’s assets (assuming she is a primary beneficiary) into her IRA and not have to use a beneficiary IRA?
Permalink Submitted by Alan - IRA critic on Wed, 2015-07-22 17:27
As long as they have a legally recognized common law marriage, the surviving spouse can roll the IRA over to their own IRA. This is true whether they file jointly or married separate.
Permalink Submitted by monic ca on Fri, 2021-10-15 12:17
Thank you for the information. However, I don’t have anyone to get married. Do you have any recommendations. I am really upset about that. Moreover, I am a lesbian and it makes things more difficult.