Are you a non-working or lower-earning spouse wondering how you can save for retirement? A spousal IRA could be the solution you’re looking for. This powerful financial tool enables working spouses to contribute to an Individual Retirement Account (IRA) for their partners, even if the partner has little or no earned income. In this guide, we’ll break down everything you need to know about spousal IRAs, from eligibility and contribution rules to tips on maximizing their benefits.
Key Takeaways (2025)
- Contribution limits: $7,000 per spouse ($8,000 if 50+).
- Deadline for 2025 contributions: Tax-filing deadline in 2026 (generally April 15, 2026).
- Eligibility: MFJ + enough taxable compensation to cover both contributions.
- Roth IRA income limits (2025):
– MFJ: full < $236k; partial $236k–$246k; none ≥ $246k
– Single/HOH: full < $150k; partial $150k–$165k; none ≥ $165k
– MFS (lived with spouse any time): partial $0–$10k; none ≥ $10k - Traditional IRA deduction phase-outs (2025) depend on whether you (or your spouse) are covered by a workplace retirement plan.
- RMDs: Traditional IRAs start at 73; Roth IRAs have no RMDs during the owner’s lifetime.
- No age limit to contribute if you (or your spouse) have taxable compensation.
What Is a Spousal IRA?
A spousal IRA is not a separate type of retirement account but rather a provision under the existing rules for traditional and Roth IRAs. It allows a working spouse to contribute to an IRA for their non-working or lower-earning partner.
Typically, IRAs require the account holder to have earned income to make contributions. However, the spousal IRA provision provides an exception for married couples filing jointly, enabling both partners to save for retirement in tax-advantaged accounts.
Key Features of a Spousal IRA:
- Each spouse must have their own IRA account; joint accounts are not allowed.
- Contributions to a spousal IRA follow the same rules as traditional or Roth IRAs.
- It’s a powerful way to double retirement savings as a couple.
Who Is Eligible for a Spousal IRA?
To qualify for a spousal IRA:
- Marital Status: You must be married and file a joint tax return.
- Earned Income: The working spouse must have earned income sufficient to cover contributions to both their IRA and their spouse’s IRA.
- Income Limits: Contributions to Roth IRAs or deductions for traditional IRAs are subject to IRS income limits.
Who Owns a Spousal IRA?
The non-working spouse is the sole owner of their spousal IRA. While the working spouse makes contributions, the account belongs entirely to the non-working spouse. This separation ensures both partners have their own retirement savings.
Spousal IRA Contribution Rules
- Annual limits: $7,000 per person; $8,000 if 50+.
- Deadline: You can make a 2025 contribution until April 15, 2026.
- No age limit: You can contribute at any age if eligible.
- Contributions can be to a Traditional, Roth, or a mix of both (within the total annual limit).
Roth IRA Income Limits 2026 & 2025
| Filing Status | MAGI (2026) | Allowed Contribution (2026) | MAGI (2025) | Allowed Contribution (2025) |
|---|---|---|---|---|
| Married filing jointly or qualifying widow(er) | < $242,000 | Up to the limit | < $236,000 | Up to the limit |
| $242,000 – $252,000 | Reduced amount | $236,000 – $246,000 | Reduced amount | |
| ≥ $252,000 | Zero | ≥ $246,000 | Zero | |
| Married filing separately (lived with spouse any time during the year) | < $10,000 | Reduced amount | < $10,000 | Reduced amount |
| ≥ $10,000 | Zero | ≥ $10,000 | Zero | |
| Single, head of household, OR married filing separately (did NOT live with spouse during the year) | < $153,000 | Up to the limit | < $150,000 | Up to the limit |
| $153,000 – $168,000 | Reduced amount | $150,000 – $165,000 | Reduced amount | |
| ≥ $168,000 | Zero | ≥ $165,000 | Zero |
Does a Spousal IRA Reduce Taxable Income?
A spousal IRA can reduce taxable income if it’s established as a traditional IRA. Contributions to a traditional IRA may be tax-deductible, which lowers your taxable income in the year you contribute.
In contrast, contributions to a Roth IRA are made with after-tax dollars and do not reduce taxable income. However, qualified withdrawals in retirement are tax-free.
Should You Choose a Traditional or Roth Spousal IRA?
The choice between a traditional and Roth spousal IRA depends on your financial situation and tax strategy.
Traditional IRA:
- Pros: Contributions may be tax-deductible, providing immediate tax savings.
- Cons: Withdrawals in retirement are taxed as ordinary income.
Roth IRA:
- Pros: Contributions grow tax-free, and qualified withdrawals are tax-free in retirement.
- Cons: Contributions are not tax-deductible.
Considerations:
- If you expect to be in a lower tax bracket during retirement, a traditional IRA may be advantageous.
- If you anticipate being in a higher tax bracket or value tax-free withdrawals, a Roth IRA could be the better choice.
Consult a fee-only financial advisor to determine which option aligns with your goals.
How to Open a Spousal IRA
- Decide on Traditional or Roth IRA: Consider factors such as income limits and tax benefits.
- Choose a Financial Institution: Spousal IRAs can be opened at banks, brokerage firms, or investment companies.
- Contribute Funds: Make contributions up to the IRS limit.
- Invest Wisely: To grow your savings, invest contributions in assets like stocks, bonds, mutual funds, or ETFs.
Example:
If you contribute $550 monthly to an IRA with an average annual return of 5%, you could accumulate nearly $330,000 over 25 years.
Related: Inheritance IRA: What Should I Do With An Inherited IRA?
Advanced: The Spousal Backdoor Roth
If your income is too high for a direct Roth contribution:
- Contribute to a nondeductible Traditional IRA.
- Convert to a Roth IRA.
Caution: The pro-rata rule applies if you have other pre-tax IRA assets, potentially making part of the conversion taxable.
Common Pitfalls
- Excess contributions: Withdraw the extra (and earnings) by the deadline or face a 6% penalty each year until corrected.
- Missed RMDs: Penalty is 25% of the missed amount (can drop to 10% if corrected promptly).
Example: The Power of Two IRAs
If you invest $550 per month into an IRA at 5% annual return for 25 years, you could have around $327,530—and funding both spouses’ IRAs doubles the impact.
Spousal IRA Quick Facts Overview (2026 & 2025)
| Feature | Details |
| Type of account | A spousal IRA can be set up as a Traditional IRA or a Roth IRA. |
| Eligibility | - Must be married filing jointly. - The working spouse must have enough earned income to cover contributions to both their own IRA and the spousal IRA. |
| 2026 Contribution Limits | $7,500 per spouse annually (or $8,500 if age 50 or older) |
| 2025 Contribution Limits | $7,000 per spouse annually (or $8,000 if age 50 or older) |
| Tax Benefits | - Traditional IRA contributions may be tax-deductible (subject to income limits). - Roth IRA contributions are made with after-tax dollars and may grow tax-free. |
| Withdrawals | - Traditional IRA withdrawals are taxed as ordinary income. - Roth IRA withdrawals are tax-free in retirement when qualified. |
| Required Minimum Distributions (RMDs) | Traditional IRAs require RMDs starting at age 73. Roth IRAs have no RMDs during the owner’s lifetime. |
Frequently Asked Questions About Spousal IRAs
1. Can I Contribute to My Spouse’s IRA If They Don’t Work?
Yes. As long as you file jointly and meet the earned income requirement, you can contribute to your spouse’s IRA even if they have no income.
2. Is a Spousal IRA the Same as a Traditional IRA?
A spousal IRA operates under the same rules as traditional or Roth IRAs but allows contributions on behalf of a non-working spouse.
3. How Is a Spousal IRA Different From an Inherited IRA?
An inherited IRA is created when an individual inherits an IRA from a deceased account holder. A spousal IRA, on the other hand, is established by a working spouse for their non-working spouse.
Is a spousal IRA a good idea?
A spousal IRA is an excellent way to enhance retirement savings as a couple. It allows families to maximize tax-advantaged savings, even if one partner doesn’t work outside the home.
By leveraging spousal IRAs, couples can build a stronger financial future together, ensuring both partners are prepared for retirement.
If you want a comprehensive financial plan, schedule a free consultation with one of our fee-only financial planners today.
Alvin Carlos, CFP®, CFA is a fee-only financial planner, in Washington, D.C. He has a Master’s degree in International Relations from SAIS-Johns Hopkins. Alvin is the founder of District Capital, a financial planning firm designed to help professionals in their 30s and 40s maximize their money and retire by 55, through holistic financial planning and research-driven investing. Schedule a free discovery call today.
