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A spousal IRA gives a non-working spouse a way to build wealth for retirement, even if they don’t have earned income of their own.
Spousal IRAs can be traditional or Roth accounts. What distinguishes a spousal IRA is that it’s opened by an income-earning spouse in the name of a non-working or lower-earning spouse.
For those who are married and thinking about their financial plan as a couple, it’s helpful to understand spousal IRA rules and how to use these accounts to fund financial goals.
Currently, SoFi does not offer spousal IRAs to members.
Key Points
• A spousal IRA allows a working spouse to fund an IRA on behalf of a non-working spouse, making it an exception to the rule that IRA contributions must come from earned income.
• To qualify, the couple must be married and filing taxes jointly, and the working spouse must have sufficient taxable compensation to cover the contributions made.
• Contribution limits for spousal IRAs match standard annual IRA limits, including catch-up contributions for those aged 50 and older.
• Total contributions to both individual and spousal IRAs combined cannot exceed the taxable compensation reported on the couple’s joint tax return for that year.
• Key benefits include enabling non-working spouses to save for retirement independently, sharing tax advantages as a couple, and supplementing existing workplace retirement savings like a 401(k).
What Is a Spousal IRA?
A spousal IRA is an individual retirement account that’s funded by one spouse on behalf of another. This is a notable exception to the rule that IRAs must be funded with earned income. In this case, the working spouse can make contributions to an IRA for the non-working spouse, even if that person doesn’t have earned income.
The couple must be married, filing jointly, in order for the working spouse to be able to fund a spousal IRA.
For example, say that you’re the primary breadwinner for your family, and perhaps your spouse is a stay-at-home parent or the primary caregiver for aging parents, and doesn’t have earned income. As long as you have taxable compensation for the year, you could open a spousal IRA and make contributions to it on your spouse’s behalf.
Saving in a spousal IRA doesn’t affect your ability to save in an IRA of your own. You can fund an IRA for yourself and an IRA for your spouse, as long as the total contributions for that year don’t exceed IRA contribution limits (more on that below), or your total earnings for the year.
How Do Spousal IRAs Work?
Spousal IRAs work much the same as traditional and Roth IRAs do by making it possible to save for retirement in a tax-advantaged way. The rules for traditional and Roth IRAs also apply to spousal IRAs.
What’s different about a spousal IRA is who makes the contributions. If an individual opens an IRA for themselves, they fund it from their own taxable income. When they open an IRA for their spouse, contributions come from them as well — not from the non-working spouse.
It’s also important to note that these are not joint retirement accounts. The non-working spouse owns the money in their IRA, even if the working spouse made contributions to it on their behalf.
Spousal IRA Rules
The IRS sets the rules for IRAs, which also govern spousal IRAs. These rules determine who can contribute to a spousal IRA, how much they can contribute, how long they have to make those contributions, and when they can make withdrawals.
Eligibility
Married couples who file a joint tax return are eligible to open a spousal IRA for the non-working spouse. As long as one spouse has taxable compensation and, in the case of a Roth IRA, they meet income restrictions, they can open an IRA on behalf of the other spouse.
Taxable compensation includes money earned from working, such as wages, salaries, tips, and bonuses. Generally, any amount included in your income is taxable and must be reported on your tax return unless it’s excluded by law.
That said, a traditional IRA does not have income requirements; a Roth IRA does.
Maximum Annual Contributions
One of the most common IRA questions is how much you can contribute each year. Spousal IRAs have the same contribution limits as traditional and Roth IRAs. These limits include annual contribution limits and catch-up contributions for savers 50 or older.
| Tax year | IRA contribution limit for individuals under age 50 | IRA contribution limit for individuals age 50 and up |
|---|---|---|
| 2025 | $7,000 | $8,000 |
| 2026 | $7,500 | $8,600 |
Remember, you can fund a spousal contribution as well as your own IRA up to the limit each year, assuming you’re eligible. That means you could double the limits in the chart above for both an individual and spousal IRA.
Contribution Limits for Traditional and Roth IRAs
There are some rules regarding contribution limits; these apply to ordinary IRAs and spousal IRAs alike.
• First, the total contributions you can make to an individual IRA and/or spousal IRA cannot exceed the total taxable compensation you report on your joint tax return for the year.
• If neither spouse is covered by a workplace retirement account, contributions to a traditional spousal IRA would be deductible. If one spouse is covered by a workplace retirement account, contributions to a traditional IRA may be phased out or eliminated.
There is an additional restriction when it comes to Roth IRAs. Whether you can make the full contribution to a spousal Roth IRA depends on your modified adjusted gross income (MAGI).
Here are the income limits, assuming as a married couple you are filing jointly.
| Tax year | Modified adjusted gross income (MAGI) | Roth IRA contribution limit |
|---|---|---|
| 2025 | Less than $236,000 | Full contribution |
| 2025 | $236,000 or more but less than $246,000 | Partial contribution |
| 2025 | $246,000 or more | Not eligible to contribute |
| 2026 | Less than $242,000 | Full contribution |
| 2026 | $242,000 or more but less than $252,000 | Partial contribution |
| 2026 | $252,000 or more | Not eligible to contribute |
Contribution Deadlines
The annual deadline for making an IRA contribution for yourself or a spouse is the same as the federal tax filing deadline. For example, the federal tax deadline for the 2026 tax year is April 15, 2027. Individuals have until then to open and fund a spousal IRA for the 2026 tax year.
Filing a tax extension does not allow you to extend the time frame for making IRA contributions.
Withdrawal Rules
Spouses who have a traditional IRA must begin taking required minimum distributions (RMDs) at age 73. Roth IRAs are not subject to RMDs, unless it’s an inherited Roth IRA.
Here are a few key spousal IRA withdrawal rules to know:
• Qualified withdrawals from a traditional spousal IRA are subject to ordinary income tax.
• Early withdrawals made before age 59 ½ may be subject to a 10% early withdrawal penalty, unless an exception applies (see IRS rules).
• Spouses who have a traditional IRA must begin taking required minimum distributions (RMDs) by April 1 of the year after they turn 73. After the first year, they must take their RMD by December 31 of each subsequent year. Roth IRAs are not subject to RMDs, unless it’s an inherited Roth IRA.
• Roth IRA distributions are tax-free after age 59 ½, as long as the account has been open for five years. Original Roth contributions (i.e., the principal) can always be withdrawn tax free.
• A tax penalty may apply to the earnings portion of Roth IRA withdrawals from accounts that are less than five years old.
Whether it makes more sense to open a traditional or Roth IRA for a spouse can depend on where a couple is taxwise now, and where they expect to be in retirement.
Deducting contributions may help reduce taxable income, which is a reason some may consider a traditional IRA. On the other hand, a Roth IRA may be preferred by those who anticipate being in a higher tax bracket when they retire since withdrawals would be tax-free.
Recommended: Inherited IRA Distribution Rules Explained
Pros and Cons of Spousal IRAs
Spousal IRAs can help married couples to get ahead with saving for retirement and planning long-term goals, but there are limitations to keep in mind.
Pros of Spousal IRAs
• Non-working spouses can save for retirement even if they don’t have income.
• Because they’re filing jointly, couples would mutually benefit from the associated tax breaks of traditional or Roth spousal IRAs.
• Spousal IRAs can add to total retirement savings for those also saving in a 401(k) or similar plan at work.
• The non-working spouse can decide when to withdraw money from their IRA, since they’re the account owner.
Cons of Spousal IRAs
• Couples must file a joint return to contribute to a spousal IRA, which could be a drawback if they typically file separately.
• Deductions to a spousal IRA may be limited, depending on income and whether the working spouse is covered by a retirement plan at work.
• Income restrictions can limit the ability to contribute to a spousal Roth IRA.
• Should a couple decide to divorce, that may raise questions about who should get to keep spousal IRA assets (although the spousal IRA itself is owned by the non-working spouse).
Spousal IRAs, Traditional IRAs, Roth IRAs
Because you can open a spousal IRA that’s either a traditional or a Roth IRA, it helps to see the terms of each side by side to compare them. Remember, spouses have some flexibility when it comes to IRAs, because the working spouse can have their own IRA and also open a spousal IRA for their non-working spouse. To recap:
• Each spouse can open a traditional IRA
• If eligible, each spouse can open a Roth IRA
• One spouse can open a Roth IRA while the other opens a traditional IRA.
Bear in mind that the terms detailed below apply to each spouse’s IRA.
| Spousal IRA | Traditional IRA | Roth IRA | |
|---|---|---|---|
| Who Can Contribute | Spouses may contribute to a traditional or Roth spousal IRA, if eligible. Roth spousal IRA eligibility is determined by filing status and income (see column at right). | Anyone with taxable compensation. | Eligibility to contribute determined by tax status and income. Married couples filing jointly must earn less than $246,000 in 2025, and less than $252,000 in 2026, to contribute to a Roth. |
| 2025 and 2026 Annual Contribution Limits | $7,000 ($8,000 for those 50 and up) in 2025; $7,500 ($8,600 for those 50 and up) in 2026. (Note that each spouse can have an IRA and contribute up to the annual limit). | $7,000 ($8,000 for those 50 and up) in 2025; $7,500 ($8,600 for those 50 and up) in 2026. | $7,000 ($8,000 for those 50 and up) in 2025; $7,500 ($8,600 for those 50 and up) in 2026. |
| Tax-Deductible Contributions | Yes, for traditional spousal IRAs* | Yes* | No |
| Withdrawals | Withdrawal rules for both types of spousal IRAs are the same as for ordinary IRAs (see columns at right). | Qualified distributions are taxed as ordinary income. Taxes and a penalty apply to withdrawals made before age 59 ½, unless an exception applies, per IRS.gov. | Original contributions can be withdrawn tax free at any time (but not earnings). Distributions of earnings are tax free at 59 ½ as long as the account has been open for 5 years. |
| Required Minimum Distributions | Yes, for traditional spousal IRAs. RMDs begin at age 73. | Yes, RMDs begin at age 73. | RMD rules don’t apply to Roth IRAs. |
* Deduction may be limited, depending on your income and whether you or your spouse are covered by a workplace retirement plan.
Recommended: Roth IRA vs. Traditional IRA: Which IRA is the right choice for you?
Creating a Spousal IRA
Opening a spousal IRA is similar to opening any other type of IRA. Here’s what the process involves:
• Find a brokerage. You’ll first need to find a brokerage that offers IRAs; most will offer spousal IRAs. When comparing brokerages, pay attention to the investment options offered and the fees you’ll pay.
• Open the account. To open a spousal IRA, you’ll need to set it up in the non-working spouse’s name. Some of the information you’ll need to provide includes the non-working spouse’s name, date of birth, and Social Security number. Be sure to check eligibility rules.
• Fund the IRA. If you normally max out your IRA early in the year, you could do the same with a spousal IRA. Or you might prefer to space out contributions with monthly, automated deposits. Be sure to contribute within eligible limits.
• Choose your investments. Once the spousal IRA is open, you’ll need to decide how to invest the money you’re contributing. You may do this with your spouse or allow them complete freedom to decide how they wish to invest.
As long as you file a joint tax return, you can open a spousal IRA and fund it. It doesn’t necessarily matter whether the money comes from your bank account, your spouse’s, or a joint account you share. If you’re setting up a spousal IRA, you can continue contributing to your own account and to your workplace retirement plan if you have one.
The Takeaway
Spousal IRAs can make it easier for couples to map out their financial futures even if one spouse doesn’t work. The sooner a couple can get started with retirement saving, the more time their money potentially has to grow through compounding returns.
FAQ
What are the rules for a spousal IRA?
Spousal IRA rules allow a spouse with taxable compensation to make contributions to an IRA on behalf of a non-working spouse. The non-working spouse owns the spousal IRA and can decide how and when to withdraw the money. Spousal IRA withdrawals are subject to the same withdrawal rules as traditional or Roth IRAs, depending on which type of account has been established.
Is a spousal IRA a good idea?
A spousal IRA could be a good idea for married couples who want to ensure that they’re investing as much money as possible for retirement on a tax-advantaged basis. In theory, a working spouse can fund their own IRA as well as a spousal IRA, and contribute up to the maximum amount for each.
Can I contribute to my spouse’s traditional IRA if they don’t work?
Yes, that’s the idea behind the spousal IRA option. When a wife or husband doesn’t have taxable income, the other spouse can make contributions to a spousal traditional IRA or Roth IRA for them. The contributing spouse must have taxable compensation, and the amount they contribute each year can’t exceed their annual income amount or IRA contribution limits.
About the author
Rebecca Lake
Rebecca Lake has been a finance writer for nearly a decade, specializing in personal finance, investing, and small business. She is a contributor at Forbes Advisor, SmartAsset, Investopedia, The Balance, MyBankTracker, MoneyRates and CreditCards.com. Read full bio.
Photo credit: iStock/andreswd
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