Spousal IRA
The IRA rules normally require earned income, but married couples filing jointly can use the working spouse's pay to fund an IRA for the spouse who does not work. In 2026 that is up to $7,500 more a year in tax-advantaged savings, or $8,600 if the non-working spouse is 50 or older. For a couple in the 22% bracket, a deductible contribution of $7,500 saves $1,650 of federal tax.
Reviewed by Ebot Mbi, CPA, EA · Last reviewed October 9, 2026
Who it fits
- Married couples filing jointly where one spouse has little or no earned income
- Stay-at-home parents, spouses between jobs, and spouses who have retired early
- Households that already fund the working spouse's 401(k) and want more tax-advantaged space
- Couples who want the non-working spouse to build retirement savings in their own name
Who it's not for
- Couples filing separately; the spousal rule requires a joint return
- Households where the couple's combined earned income is lower than the total contributions
- High-income couples who would get neither a deduction nor direct Roth eligibility, unless they use the backdoor Roth route
How it works
Each spouse can contribute up to $7,500 for 2026, plus a $1,100 catch-up at 50 or older. On a joint return, the couple's combined taxable compensation counts toward both contributions. The only cap is that the two contributions together cannot exceed what the couple earned.
The account belongs to the non-working spouse. It is an ordinary traditional or Roth IRA in that spouse's name. There is no special spousal account type. The label only describes how it is funded.
Deductibility depends on workplace plans and income. If neither spouse is covered by a workplace retirement plan, the traditional IRA contribution is fully deductible. If the working spouse is covered, the non-working spouse's deduction phases out over a separate, higher income range, indexed for inflation each year. Above that range, the contribution can still be made as nondeductible.
A Roth version is available if the couple's income is under the Roth limits, which are indexed for inflation each year. Roth contributions are not deductible, but qualified withdrawals later are tax-free.
Contributions for 2026 can be made until the original due date of the 2026 return in April 2027. Extensions do not extend this deadline.
Illustrative example
Illustrative: a married couple filing jointly. One spouse, age 54, earns $180,000 and contributes to a workplace 401(k). The other spouse, age 51, has no earned income. Their income is below the deduction phase-out for the non-covered spouse, and they are in the 22% bracket.
- Non-working spouse's IRA limit: $7,500 + $1,100 catch-up = $8,600
- Deduction on the joint return: $8,600
- Federal tax saved: $8,600 x 22% = $1,892
- Compensation test: $8,600 is well below the couple's $180,000 of earned income
In this illustration, the spousal IRA adds $8,600 of tax-deferred savings and cuts this year's federal tax by $1,892.
The rules
| Rule | Citation |
|---|---|
| On a joint return, a spouse with little or no compensation can use the other spouse's compensation to support an IRA contribution. | IRC §219(c) |
| When only the working spouse is covered by a workplace plan, the non-covered spouse's deduction phases out under a separate income range. | IRC §219(g)(7) |
| Contributions are treated as made for the prior year if paid by the return due date, without extensions. | IRC §219(f)(3) |
| Roth IRA contributions are subject to income limits and are not deductible. | IRC §408A(c) |
Watch-outs
- Contributions above the allowed amount face a 6% excise tax each year until corrected. Track both spouses' contributions together.
- A nondeductible contribution must be reported on Form 8606, or the basis can be lost and taxed again at withdrawal.
- If the non-working spouse already has pre-tax IRA money, a later backdoor Roth conversion triggers the pro-rata rule.
- Self-employed spouses with a net loss do not have compensation. Check the combined earned-income figure before contributing.
What we do
We confirm eligibility, test the deduction and Roth income limits against your actual return, and pick traditional or Roth based on your current and expected brackets. We file the Form 8606 where required and track basis year over year.
Questions
Can the non-working spouse contribute to a Roth instead?
Yes, if the couple's income is under the Roth limits, which are indexed for inflation each year. Above them, a nondeductible traditional contribution followed by a conversion may work.
Whose name is on the account?
The non-working spouse's. It is their IRA, with their own beneficiary designation.
Can we contribute for last year after January 1?
Yes. Contributions for a tax year can be made until the original filing deadline, usually April 15 of the following year.