Can I Open An IRA For My Spouse? The Spousal IRA Explained
A Spousal IRA is an individual retirement account that allows a working spouse to contribute to an IRA in the name of a non-working or lower-earning spouse. This is particularly useful for couples where one spouse doesn't have earned income (such as if they're staying home with children or retired).
It is essentially an ordinary IRA, such as a traditional or Roth IRA, but referred to as “spousal” because contributions come from the working spouse’s income, even though the account is in the non-working spouse’s name.
Here’s how it works:
Eligibility
The working spouse must have enough earned income to cover both their own IRA contribution and the non-working spouse's contribution.
The couple must be filing their taxes as “Married Filing Jointly”. If you are married but file separately, you aren’t eligible.
For a traditional IRA, there’s an income cap that limits who can deduct their contributions if one spouse also has access to a workplace retirement plan. In the case of Roth IRAs, an income cap restricts who can contribute at all.
Contribution Limits
The contribution limit for a Spousal IRA is the same as for a regular IRA: up to $7,000 per person per year (in 2025), or $8,000 if age 50 or older.
Tax Treatment
Just like regular IRAs, Spousal IRAs can either be Traditional or Roth. The tax benefits depend on the type of IRA chosen.
Account Opening
Since a spousal IRA is just a normal IRA account, it can be opened at any broker. You’ll have to provide the same personal information, such as birth date and Social Security number, to open the account.
This is a great way to ensure both spouses are saving for retirement, even if one isn't earning income at the moment.
Thanks for reading & I hope you found value in this post.
-Kolin
If you are looking to get organized on your finances, read this post: Getting Your Finances Organized As A Newly Married Couple
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