A spousal IRA allows a working spouse to contribute to an IRA in a non-working or low-earning partner’s name. The account belongs entirely to the non-working spouse and grows independently. The only requirement is that the couple files a joint federal tax return and the working spouse has enough earned income to cover the combined contributions.
In 2026, each spouse can contribute up to $7,000 to their own IRA (or $8,000 if age 50 or older). A household where both spouses maximize contributions can save up to $14,000 to $16,000 per year in tax-advantaged retirement accounts.
Who Qualifies for a Spousal IRA?
To open or fund a spousal IRA, you must:
- Be married and filing a joint federal tax return
- Have a working spouse with earned income at least equal to the total contributions made for both IRAs
- Be under age 70½ for a traditional spousal IRA (no age limit for Roth)
Earned income includes wages, salaries, self-employment income, and tips. It does not include investment income, rental income, or Social Security benefits.
Example: One spouse earns $65,000 in wages. The other spouse has no income. The working spouse can contribute $7,000 to their own IRA and $7,000 to the non-working spouse’s spousal IRA — for a combined total of $14,000 — because $65,000 in earned income exceeds $14,000.
2026 Spousal IRA Contribution Limits
| Spouse Age | Individual IRA Limit | Household Combined Limit |
|---|---|---|
| Both under 50 | $7,000 each | $14,000 |
| One spouse 50+ | $7,000 + $8,000 | $15,000 |
| Both spouses 50+ | $8,000 each | $16,000 |
The working spouse’s earned income must meet or exceed the combined contribution total. If earned income is less than the combined limit, contributions are limited to the total earned income.
Traditional vs Roth Spousal IRA
A spousal IRA can be either a traditional IRA or a Roth IRA, just like any standard IRA. The choice depends on your current tax situation and expected future tax rate.
Traditional Spousal IRA
- Contributions may be tax-deductible, reducing the working spouse’s taxable income now
- Earnings grow tax-deferred
- Withdrawals in retirement are taxed as ordinary income
- Deductibility limits apply if either spouse is covered by a workplace retirement plan
If the working spouse is covered by a 401(k) or similar plan, the deductibility of a traditional IRA contribution phases out based on income. In 2026, the phase-out for married couples where the contributing spouse is covered by a plan begins at a MAGI of approximately $126,000 and ends at $146,000. If only the non-working spouse participates in a plan but the working spouse doesn’t, a higher phase-out threshold applies.
Roth Spousal IRA
- Contributions are made with after-tax dollars — no deduction now
- Earnings grow completely tax-free
- Qualified withdrawals in retirement are tax-free
- Income limits apply — contributions phase out for married couples filing jointly with a combined MAGI between approximately $236,000 and $246,000 in 2026
For households with income below these thresholds, a Roth spousal IRA is often the more powerful long-term choice, especially for younger non-working spouses who have decades of tax-free compounding ahead of them.
| Feature | Traditional Spousal IRA | Roth Spousal IRA |
|---|---|---|
| Contribution tax treatment | Pre-tax (may be deductible) | After-tax |
| Growth | Tax-deferred | Tax-free |
| Withdrawals | Taxed as ordinary income | Tax-free (if qualified) |
| Required minimum distributions | Yes, starting at age 73 | No (during owner’s lifetime) |
| Income limits | Deductibility limits only | Contribution phase-out applies |
How to Open a Spousal IRA
- Choose a brokerage. Most major brokerages — Fidelity, Vanguard, Schwab, and similar — allow you to open an IRA in minutes. See the best IRA accounts for a comparison.
- Open the account in the non-working spouse’s name. The account must belong to the spouse who will use it in retirement — not the working spouse.
- Make contributions from any household funds. There is no requirement that the contribution come from the working spouse’s paycheck specifically.
- Choose traditional or Roth based on your current income, expected tax rate in retirement, and eligibility for deductions.
- Invest the contributions. Simply depositing into the IRA is not enough — you must invest the funds in stocks, bonds, funds, or other assets for them to grow.
The contribution deadline is the federal tax filing deadline — typically April 15 — for the prior tax year. You can contribute to a 2026 spousal IRA as late as April 15, 2027.
Why the Spousal IRA Rule Matters
Without the spousal IRA provision, a non-working spouse would have no way to build independent retirement savings in a tax-advantaged account. Over 30 years, even modest contributions compound significantly:
| Annual Contribution | Years | 7% Annual Return | Balance at Year 30 |
|---|---|---|---|
| $7,000 | 30 | 7% | ~$661,000 |
| $8,000 (50+ catch-up) | 30 | 7% | ~$755,000 |
These figures assume contributions at the start of each year. See the IRA contribution limits guide for the complete rules and how limits change over time.
The spousal IRA also has practical benefits in the event of divorce or death — because the account belongs entirely to the non-working spouse, it provides a protected pool of retirement assets that is legally separate from the working spouse’s accounts.
For help deciding between a traditional and Roth spousal IRA, see the Roth vs traditional IRA guide.
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