How does a spousal IRA get set up? Help!!!

From: juanb@vnet.ibm.com
Subject: How does a spousal IRA get set up? Help!!!
Date: Tue, 25 Jan 00 15:53:26 EST

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My father retired last year, receives SS and is under 70 1/2.  My
mother still works and has enough earnings to cover the $4000 max
for IRA contributions for them both.  They already have existing IRA's
which they've contributed to in the past.

I spoke to both Vanguard and T. Rowe Price and they said he could
add to his existing IRA, since he was under 70 1/2 and the
earnings on their joint return was greater than the IRA max. So, they
made a contribution to it, but now I'm wondering if that's correct
or if there was a separate process for a spouse to add to it?

ANY help would be greatly appreciated.  Also, if they made a mistake,
is there any penalty and what would have to be done to "undo" it???

Thanks in advance,
Juan

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