What Is a Spousal IRA? Rules and Benefits Explained
Written by
Vance Cariaga
Edited by
Emily Gadd
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A spousal IRA is a retirement account that offers tax benefits and allows a working spouse to contribute to the retirement savings of a non-working spouse. This can help one-income couples build savings faster.
Normally, an IRA account holder must have earned income to contribute to the account, but this rule is waived with spousal IRAs.
Spousal IRS vs. Other IRAs
Spousal IRAs follow the same guidelines as traditional and Roth IRAs:
- With a traditional IRA, contributions are made with pre-tax dollars and grow tax-deferred until you withdraw them.
- With a Roth IRA, contributions are made with after-tax dollars and can be withdrawn tax-free.
A spousal IRA can be either a traditional IRA or a Roth IRA, giving non-working spouses access to the same tax-advantages and benefits of all IRAs. Regardless of who contributes, only one spouse is the legal account holder.
Who Is Eligible for a Spousal IRA?
To qualify for a spousal IRA, a couple must meet the following criteria:
- Be legally married
- File taxes jointly
- Have one spouse earning income
The working spouse’s earned income must be equal or greater than the combined contributions to both spouses’ IRAs. Spouses who do not earn income can contribute to a spousal IRA as long as they file joint taxes with the income-earning spouse.
Spousal IRA Contribution Limits
In 2025, each spouse can contribute up to $7,000 for a total of $14,000, according to the IRS. Spouses 50 and older can make an additional “catch-up” contribution of $1,000 each, meaning the combined limit rises to $16,000 a year.
Spousal IRA Rules and Regulations
Spousal IRAs follow standard rules for traditional and Roth IRAs. Here’s what to know:
- Traditional IRAs offer tax-deductible contributions and tax-deferred growth. Roth IRAs use after tax-contributions but offer tax-free withdrawals.
- You can contribute until April 15 of the following year.
- Traditional IRAs require withdrawals starting at age 73. Roth IRAs have no RMDs.
- Couples must file “married filing jointly” to qualify.
- Only one spouse owns the account — it’s not a joint account.
Which IRA Is Best For You?
Traditional IRAs and Roth IRAs have some key points of difference you should know:
Traditional IRA
- Contributions may be tax deductible, depending on income.
- Withdrawals are taxed as ordinary income in retirement.
- Best for: Couples seeking upfront tax savings.
Roth IRA
- Contributions are made with after-tax dollars, but withdrawals are tax-free in retirement.
- Subject to income eligibility rules.
- Best for: Couples who expect higher taxes in retirement.
Setting Up a Spousal IRA
Opening a spousal IRA works the same as other IRAs. Here are some steps you can follow:
- Find a bank, credit union, broker, robo-advisor or other financial institution that offers IRAs.
- You’ll need to provide some personal information such as your name, birthdate and Social Security number.
- Be prepared to also make a minimum opening deposit.
- After the account is opened, you can contribute up to the maximum yearly limit set by the IRS.
- IRAs let you choose your own investments, such as stocks, bonds and mutual funds. You can also decide how to allocate each investment.
The Bottom Line
The main benefit of a spousal IRA is that it lets both spouses invest in an IRA, which effectively doubles the contributions and savings. This is a big advantage for couples where only one spouse earns income.
As with any IRA, you also get tax benefits. These come in the form of tax-deferred savings with a traditional IRA or tax-free withdrawals with a Roth IRA. In some cases, you might be able to deduct IRA contributions from your income tax returns.
FAQ
Here are the answers to some of the most frequently asked questions about spousal IRAs.- What is a spousal IRA, and how does it work?
- A spousal IRA allows a working spouse to contribute to an IRA on behalf of a non-working spouse, enabling both to save for retirement.
- Can both spouses contribute to an IRA if only one works?
- Yes. Each spouse can contribute up to the IRS limit, even if only one earns income, provided they file taxes jointly.
- What are the tax benefits of a spousal IRA?
- A traditional IRA offers potential tax deductions, while a Roth IRA allows tax-free withdrawals.
- How do I open a spousal IRA account?
- Open a spousal IRA with any bank, brokerage or financial institution that offers IRAs. You'll need to provide personal information and make an initial deposit.
- What happens to a spousal IRA after divorce?
- The spousal IRA belongs to the account holder. It may be divided during the divorce proceedings.
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