Spousal IRAs: An Option for Non-Working or Lower-Earning Spouses

A spousal IRA is a contribution rule rather than a separate account type. It lets a non-working or lower-earning spouse contribute to an individual retirement account (IRA) in their own name, based on the working spouse’s income rather than their own.

Retirement account contributions are normally tied to a person’s own earned income. The spousal IRA rule extends that eligibility to a spouse with little or no wages of their own. Here is who can use it, how much can go in, and a few items to confirm before funding one.

Who Can Use a Spousal IRA?

The couple files a joint tax return, and the working spouse’s earned income covers both contributions combined, since the rule is based on household earned income rather than the non-working spouse’s own wages. A spouse with little or no income can contribute the full amount as long as the working spouse’s income supports it.

The account itself is opened and owned solely in the non-working spouse’s name. It isn’t a joint account, even though the contribution is based on the working spouse’s earned income.

How Much Can a Non-Working Spouse Contribute?

For 2026, the contribution limit is $7,500, or $8,600 for a spouse age 50 or older, the same limits that apply to any individual IRA contribution. Each spouse can contribute up to their own limit based on combined household earned income, so a couple can direct up to twice that amount across two IRAs in a single year.

Traditional or Roth?

A spousal IRA can be opened as either a traditional or a Roth account, and the choice works the same way it would for any other IRA. A traditional IRA contribution may be deductible depending on the household’s income and whether either spouse is covered by a workplace plan. A Roth IRA contribution is made with after-tax dollars, and qualified withdrawals in retirement come out tax-free.

Roth contribution eligibility phases out at higher household income levels, based on modified adjusted gross income (MAGI) on the joint return. A couple whose income is near or above that range can check the current thresholds to confirm a Roth contribution is available for the year.

What Happens to the Account in a Divorce or Death?

A spousal IRA is titled in the non-working spouse’s name only, and the title alone does not decide who keeps it if the marriage ends. In a divorce, the account is treated like any other IRA when assets are divided, and the outcome depends on your state’s laws and the terms of your settlement. If the working spouse dies first, the account remains the surviving spouse’s own asset and continues under normal IRA rules.

A few things to confirm before funding a spousal IRA for 2026:

• That the couple files a joint return and the working spouse’s earned income covers both contributions combined.
• The contribution deadline, which is the tax filing deadline for the year (April 15, 2027, for 2026 contributions, excluding extensions) rather than December 31.
• Whether household income affects a Roth contribution, or the deductibility of a traditional one.
• That the account is opened in the non-working spouse’s name only, as an individual account.

For a household where one spouse stepped back from paid work, whether to raise children, care for a family member, or for another reason, a spousal IRA is one way to keep that spouse’s own retirement savings moving forward on the same schedule as their partner’s. If you’d like to talk through whether this fits your household, schedule a call with our team.

This content is for informational purposes only and is not individualized advice. Tax outcomes depend on an individual’s circumstances. MPM does not provide tax or legal advice. Consult your tax professional before implementing any strategy.