What You Should Know About Spousal IRAs
Without spousal IRAs, you would need an earned income to contribute to your retirement account.


Millions of spouses leave the workforce every year to care for children or aging parents, a move that can jeopardize retirement security. But if one partner is working, a spousal IRA can help close the gap.
As long as one spouse has earned income and the couple files a joint tax return, the working spouse can contribute to an IRA in the nonworking spouse’s name. That makes a spousal IRA an ideal retirement-savings tool for spouses who plan to take a pause from their careers, says Madison Sharick, a certified financial planner in Pittsburgh.
In instances in which one spouse has no taxable income, the working spouse can contribute up to the annual contribution limit to a spousal IRA; in 2024 and 2025, it’s $7,000, or $8,000 for those who are 50 or older. The total contribution to a spousal IRA can’t exceed the taxable income reported on the couple’s joint federal tax return. The account is owned by the nonworking spouse, regardless of who contributes to the account, and is his or hers to keep, even if the marriage ends in divorce.

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Depending on how long you have to save, contributing to a spousal IRA could make a big difference in the owner’s retirement security. An analysis by T. Rowe Price found that an annual contribution of $7,000 a year would be worth more than $307,056 in 20 years, assuming an average annual return of 7%. The IRS adjusts IRA contribution limits every year to account for inflation, so your total could be larger if you contribute the maximum to the IRA.
Tax effects and income limits
In addition to boosting the nonworking spouse’s savings, contributions to a spousal IRA can reduce the couple’s tax bill by allowing them to save more for retirement on a tax-advantaged basis, says Jeff McDermott, a CFP in Saint Johns, Fla. Like regular IRAs, spousal IRAs come in two flavors: traditional and Roth. Contributions to a traditional spousal IRA are pretax; withdrawals are taxed as ordinary income, and they’re subject to a 10% penalty if the owner withdraws funds before age 59½. Traditional IRAs are also subject to required minimum distributions (RMDs), which currently kick in at age 73.
Contributions to a spousal Roth IRA are made with after-tax dollars, but withdrawals of earnings and contributions are tax-free as long as the IRA owner is 59-½ or older and has owned the Roth for at least five years. And you don’t have to take RMDs from a Roth. However, as is the case with regular Roth IRAs, spousal Roth IRAs are subject to income limits on contributions. For 2024, married couples with modified adjusted gross income (MAGI) of less than $230,000 can make the full contribution to a spousal Roth IRA. Couples with MAGI of at least $230,000 and less than $240,000 can make a reduced contribution, while couples with MAGI of $240,000 or more are ineligible to contribute to a Roth.
The income limits for 2025 are higher; married couples with modified adjusted gross income (MAGI) of less than $236,000 can make the full contribution to a spousal Roth IRA. Couples with MAGI of at least $236,000 and less than $246,000 can make a reduced contribution, while couples are ineligible to contribute to a Roth when their MAGI is $246,000 or more.
You can open a spousal IRA with a brokerage firm, just as you would with a regular IRA, and allocate the funds to a variety of investments, depending on your age and tolerance for risk. Ideally, though, you should coordinate investments in a spousal IRA with other retirement plans, such as the working spouse’s 401(k) and traditional or Roth IRA.
Note: This item first appeared in Kiplinger Personal Finance Magazine, a monthly, trustworthy source of advice and guidance. Subscribe to help you make more money and keep more of the money you make here.
Related content
Get Kiplinger Today newsletter — free
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Block joined Kiplinger in June 2012 from USA Today, where she was a reporter and personal finance columnist for more than 15 years. Prior to that, she worked for the Akron Beacon-Journal and Dow Jones Newswires. In 1993, she was a Knight-Bagehot fellow in economics and business journalism at the Columbia University Graduate School of Journalism. She has a BA in communications from Bethany College in Bethany, W.Va.
-
Eight Ways To Save on Your Next Luxury Trip
Looking for ways to stretch your retirement dollars? Follow these tips to get a deal on your next vacation.
-
Donating Complex Assets Doesn't Have to Be Complicated
If you're looking to donate less-conventional assets but don't know where to start, this charity executive has answers, such as considering a donor-advised fund (DAF) for its tax benefits and ease of use.
-
Eight Ways To Save on Your Next Luxury Trip
Looking for ways to stretch your retirement dollars? Follow these tips to get a deal on your next vacation.
-
Donating Complex Assets Doesn't Have to Be Complicated
If you're looking to donate less-conventional assets but don't know where to start, this charity executive has answers, such as considering a donor-advised fund (DAF) for its tax benefits and ease of use.
-
Think a Repeal of the Estate Tax Wouldn't Affect You? Wrong
The wording of any law that repeals or otherwise changes the federal estate tax could have an impact on all of us. Here's what you need to know, courtesy of an estate planning and tax attorney.
-
In Your 50s? We Need to Talk About Long-Term Care
Many people don't like thinking about long-term care, but most people will need it. This financial professional recommends planning for these costs as early as possible to avoid stress later.
-
Retire in Costa Rica for Expat Heaven
When you retire in Costa Rica, you get natural beauty, ease of relocation and affordability. Will you become a part of its thriving expat community?
-
Over Half of Americans Stumble Financially After Losing a Loved One. Are You Prepared?
Losing a loved one can be overwhelming, and for many, it also puts an unexpected strain on their finances, a study shows
-
Social Security Pop Quiz: Are You Among the 89% of Americans Who'd Fail?
Shockingly few people have any clue what their Social Security benefits could be. This financial adviser notes it's essential to understand that info and when it might be best to access your benefits.
-
Want to Avoid High Blood Sugar as You Age? Stay Married
A healthy blood sugar level can help you avoid type 2 diabetes as you age. If you're married, you can thank your spouse for making that a little bit easier.