7 Key Things to Know About Spousal IRA Contributions

Spousal IRA contributions allow a working spouse to contribute to an IRA on behalf of a non-working or lower-earning spouse, an important strategy for couples who want to maximize retirement savings even when one partner has little or no earned income.

Here are the essentials: ‍

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1. They Are Allowed Even If One Spouse Has No Earned Income

A non-working or low-income spouse can still contribute to an IRA as long as:

• The couple is married filing jointly
• The working spouse has enough earned income to cover both contributions
• This rule helps couples continue building retirement savings during caregiving years, schooling, or career breaks.

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‍2. The Contribution Limits Are the Same as Regular IRA Limits

For each eligible spouse, the annual limit in 2026 is:

• $7,500 if under age 50
• $8,600 if age 50 or older (catch-up)

Each spouse gets their own limit; the working spouse’s income can fund both. Keep in mind that the contribution limits are rising in 2026. If you are planning on making a prior year (2025) contribution, check for those limits HERE. ‍

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3. Traditional and Roth IRAs Both Qualify

Spousal contributions can go to:

• A Traditional IRA (potentially tax-deductible, depending on income and participation in employer plans)
• A Roth IRA (subject to modified AGI limits for the couple)
• The IRA itself belongs to the spouse receiving the contribution.

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4. Deductibility Rules Still Apply

For Traditional IRAs, whether contributions are deductible depends on:

• Income
• Whether the working spouse is covered by a retirement plan at work  
• Note: If the working spouse is covered, deductions may phase out, but contributions themselves are still allowed.

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5. Roth IRA Eligibility Still Depends on Joint Income

Even for spousal contributions, Roth IRA limits are based on the couple’s combined MAGI.

If MAGI is too high, Roth contributions may phase out or become ineligible. ‍

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6. Each Spouse Must Have Their Own IRA

Even though one spouse’s income can fund both contributions:

• Each IRA is individually owned
• Each IRA has its own investment choices, beneficiary designations, and tax treatment

This helps maintain clarity and compliance with IRS rules. ‍

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7. Perfect for SDIRAs, but Compliance Still Matters

You can make spousal contributions to Self-Directed IRAs, including Traditional and Roth SDIRAs.

Just remember:

• The contribution must be made in cash
• The account holder, not the spouse making the income, owns the IRA and all investments
• All SDIRA rules apply (no self-dealing, no disqualified persons, no personal use of assets)

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Final Thoughts

Spousal IRA contributions are a powerful way for couples to maximize retirement savings, especially when one spouse has limited or no earned income. They can be used with Traditional IRAs, Roth IRAs, and Self-Directed IRAs holding alternative assets. ‍

‍Mountain West IRA does not provide tax, legal, or investment advice.

Before making a contribution, always consult your CPA or financial advisor to ensure you meet IRS requirements and choose the right account type for your overall retirement strategy. ‍

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Ready to take more control of your retirement?

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