SAHMs - Do you have a retirement account? Do you contribute an amount equal to your DH?

[youngspiritmom]

My DH has a retirement account through his employer and contributes monthly.  Since I'm a SAHM and don't work, I opened a Roth IRA so I will have my own account to save for retirement (more info on retirement accounts for non-working spouses here).

I'm wondering how many of you non-working parents/partners have retirement accounts. If you do have one, do you contribute an amount equal to the amount your spouse does each month? If not, why not?

[sewingmommy]

I have a traditional IRA and a scottrade account which my husband funds for me every  year ...he also pays into my social security account so that when we retire I will be able to receive my full amount ...

[Poddi]

I'm not American, so no IRA or Roth.  I do have a spousal retirement account.  It's less than DH's, because we were dumb and didn't realize we could open one until a couple years ago.  We plan to keep putting savings in it until it catch up with DH's, though.

[pbjmama]

I don't have one now but I do plan to in the future, after we pay off most of our debts. We contribute the max to my dh's account and his employer matches.

[gabbyraja]

I do have one now (my NY's resolution), but do not yet contribute regularly. I don't feel comfortable that our emergency fund is large enough yet. When it is, then I will contribute what we can afford, which may or may not be the same as my husband.

[youngspiritmom]

Originally Posted by sewingmommy 

I have a traditional IRA and a scottrade account which my husband funds for me every  year ...he also pays into my social security account so that when we retire I will be able to receive my full amount ...

Sewingmommy - can you tell me more about paying into your social security so when you retire you can receive the "full amount"? What does this mean - what is the full amount? I'm still learning and would like to know more about how this works. I read in a Suze Orman book that being married to your spouse for 10+ years makes you eligible for fuller social security benefits. Any links/info about this is appreciated.

[TiredX2]

Originally Posted by youngspiritmom 

I'm wondering how many of you non-working parents/partners have retirement accounts. If you do have one, do you contribute an amount equal to the amount your spouse does each month? If not, why not?

Both DP & I have Roth IRA's.  I had the goal of having one by the time I was 30 (we started them that year and we have fully funded them since).  I do not contribute an equal amount as my spouse because he also has access to a 401(k) through work.  If I could, we would split it exactly down the middle but instead we fund his 401(k) and then both of our Roths.  I think the government should change it so that instead of being able to put $17K (2012) in a 401(k) until you are 50 and $5K (2012) in an IRA you could just put $22K into a combination of the two--- whichever works best for you.  Some employers don't offer a 401(k) or a 403(b) so those employees are at a serious disadvantage for retirement savings.
 

Originally Posted by youngspiritmom 

Sewingmommy - can you tell me more about paying into your social security so when you retire you can receive the "full amount"? What does this mean - what is the full amount? I'm still learning and would like to know more about how this works. I read in a Suze Orman book that being married to your spouse for 10+ years makes you eligible for fuller social security benefits. Any links/info about this is appreciated.

I'd love to hear about this, too.

[SunRise]

TiredX, I so agree with you about the limit on retirement savings. I work for a small private company and there is no 401k. I was also self-employed for a few years but learned too late that I could open my own or something similar to a 401k. Anyhow, 5000 a year in a retirement fund seems little (especially when one is my age!) ... I found it interesting to read about the 17000 that can go into a 401K! ... I do save more, but it is not part of a retirement program,

Concerning the social security...I know one has to earn 40 credits in order to receive social security (besides contributing $$ via withholdings).  Each working person can earn up to 4 credits / year (by working full time hours, P/T earns credits too, it just takes longer), and after 10 years of full time working, one will earn the 40 credits which = social security payments, (although the amount received is variable).  So I wonder if one is able to contribute $ to social security when not working in order to still get it during retirement? hmmm.

Youngspiritmom: a bit about social security - 4.2% is withheld from your gross (bi-weekly, weekly, however you are paid pay) and sent to social security. NORMALLY 6.2% would be withheld from your pay and sent to social security but in 2011 and in Jan & Feb, the government lowered the withholdings so you would have more take home. They have recently decided to extend this program for the rest of 2012. (So next year you would see a higher deduction on your take home)

The employer also contributes another 6.2% on your behalf. 

SO right now,  the full contributions to social security is 10.4%. Next year the deduction / contribution would return to 12.4% (up to a certain wage base amount), Since the contribution is based on wages and employers contribution, I am not sure how one would contribute on their own. shrug!

Edited by SunRise - 3/6/12 at 12:47pm

[AbbyGrant]

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Edited by AbbyGrant - 6/23/12 at 10:51am