What is a spousal IRA?

Planning for retirement is important for every family, but it becomes especially critical when one spouse earns little to no income. In these situations, a spousal IRA is a valuable—yet often overlooked—strategy that can help build retirement savings for both partners, even if only one spouse is employed.

A spousal IRA isn’t a special type of account, but rather a strategic use of a traditional or Roth IRA that allows the working spouse to contribute on behalf of their non-working or low-income spouse. The primary requirement is that the couple must file a joint tax return. Additionally, the working spouse must earn enough income to cover both their own IRA contribution and their spouse’s.

Contribution Limits

For the 2025 tax year, the contribution limit for both traditional and Roth IRAs is $7,000 per person under age 50. Individuals age 50 and older can contribute an additional $1,000, bringing their total limit to $8,000.

The spousal IRA helps ensure that both spouses can contribute toward retirement—even if only one earns income—helping to equalize savings and maximize long-term tax advantages.

Income Limits and Account Types

Couples can choose between a traditional IRA or a Roth IRA for the spousal contribution. The key difference lies in the tax treatment:

• Traditional IRA contributions may be tax-deductible in the year they’re made, offering an upfront tax benefit.
• Roth IRA contributions are made with after-tax dollars, meaning no current tax deduction, but qualified withdrawals in retirement are tax-free.

For 2025, couples with a modified adjusted gross income (MAGI) under $236,000 can contribute the full amount to a Roth IRA. Eligibility phases out completely at $246,000.

Getting Started

Opening a spousal IRA is simple. The account must be in the name of the non-working spouse, and contributions must be made before the annual tax filing deadline. Most financial institutions allow you to open and fund these accounts online, and many offer the option to consult with a financial advisor for personalized guidance.

Final Thoughts

A spousal IRA is a smart, flexible tool for couples to boost their retirement savings—especially when one spouse has little or no earned income. With the increased contribution limits for 2025, this strategy is more advantageous than ever.

Need help developing your retirement plan? Contact us to discuss how a spousal IRA can fit into your overall financial strategy.