Spousal IRA
An IRA funded by a working spouse on behalf of a non-working or lower-earning spouse, allowing both partners to save for retirement even if only one has earned income.
What is Spousal IRA?
A spousal IRA allows a married person with earned income to contribute to an IRA in the name of their non-working or lower-earning spouse. Normally, IRA contributions require earned income equal to or greater than the contribution amount. The spousal IRA is an exception: as long as the couple files a joint tax return and the contributing spouse has sufficient earned income, the non-earning spouse can contribute up to the annual IRA limit ($7,000 in 2025, or $8,000 for those 50+). The spousal IRA can be either a Traditional IRA (pre-tax contributions, taxable withdrawals) or a Roth IRA (after-tax contributions, tax-free qualified withdrawals), subject to the same rules as standard IRAs. This provision is particularly important for couples where one partner leaves the workforce to raise children or care for family members, ensuring both spouses accumulate independent retirement savings.
Example
Married couple: Michael works and earns $120,000; Jennifer is a stay-at-home parent with no earned income. In 2025, Michael contributes $7,000 to his own Roth IRA and funds a Spousal Roth IRA in Jennifer's name with an additional $7,000. The couple contributes $14,000 toward retirement in a single year despite only one working spouse — a strategy that doubles their tax-advantaged retirement savings.
Source: IRS Publication 590-A — Contributions to Individual Retirement Arrangements