IRA Contribution and Deduction Limits for Married Couples

An Individual Retirement Arrangement (IRA) is a tax-advantaged savings plan designed for post-work years, offering growth opportunities not available in standard accounts. For married couples, the regulations are detailed, with a framework that depends on joint income, tax filing status, and whether either spouse has a retirement plan at their job. The amount a couple can contribute and whether those contributions can be deducted from taxable income shifts based on their financial situation. The interaction between each spouse’s employment benefits and their combined income creates distinct scenarios with different outcomes.

Annual IRA Contribution Limits

The Internal Revenue Service (IRS) sets a maximum amount that an individual can contribute to all their IRAs each year. For 2025, the standard contribution limit is $7,000 per person. This limit applies individually to each spouse, meaning a married couple can contribute a total of $14,000 per year. This contribution is tied to compensation, meaning an individual must have earned at least as much in taxable compensation as they contribute.

To help accelerate savings for those nearer to retirement, the IRS allows an additional “catch-up” contribution for individuals age 50 or older. For 2025, this amount is $1,000, raising the total potential contribution for an individual age 50 or over to $8,000. If both spouses are 50 or older, their combined maximum contribution could reach $16,000 for the year.

Deducting Traditional IRA Contributions

While any individual with sufficient compensation can contribute to a Traditional IRA, the ability to deduct that contribution on a tax return is not guaranteed. This tax benefit is determined by the couple’s Modified Adjusted Gross Income (MAGI), their tax filing status, and whether each spouse is covered by a retirement plan at work. The IRS sets specific income phase-out ranges that determine if a contribution is fully deductible, partially deductible, or not deductible at all.

When both spouses are covered by a workplace retirement plan, the income limits for deductibility are lower. For 2025, married couples filing jointly can take a full deduction if their MAGI is $126,000 or less. The deduction is gradually phased out for incomes between $126,000 and $146,000, and no deduction is allowed once their MAGI exceeds $146,000.

A different set of rules applies if only one spouse is covered by a workplace plan. The spouse who is not covered by a plan has a higher income threshold for deducting their IRA contributions. For 2025, the non-covered spouse can take a full deduction as long as the couple’s joint MAGI is below $236,000. The deduction is phased out for incomes between $236,000 and $246,000. The spouse who is covered by the workplace plan remains subject to the lower income limits previously mentioned.

If neither spouse is covered by a retirement plan at work, both spouses can take a full deduction for their Traditional IRA contributions regardless of their income.

Roth IRA Contribution Eligibility

Unlike Traditional IRAs, contributions to a Roth IRA are never tax-deductible. The ability to contribute directly to a Roth IRA is limited by income. The IRS establishes Modified Adjusted Gross Income (MAGI) phase-out ranges that determine whether a married couple filing jointly can make a full contribution, a partial contribution, or no contribution at all.

For married couples filing a joint tax return in 2025, a full Roth IRA contribution is allowed if their MAGI is less than $236,000. This allows them to contribute up to the annual limit for each spouse.

Once a couple’s MAGI enters the phase-out range, the amount they can contribute is reduced. For 2025, this range is from $236,000 to $246,000. If a couple’s MAGI exceeds the upper limit of this range, they are not permitted to make any direct contribution to a Roth IRA for that year.

Unique Rules for Married Couples

The Spousal IRA

The tax code includes a provision known as a Spousal IRA, which allows a married individual with little or no taxable compensation to contribute to their own IRA. This rule permits a non-working or low-earning spouse to save for retirement. To be eligible, the couple must file a joint tax return, and their total combined compensation must be equal to or greater than the total IRA contributions made for both spouses.

For example, if one spouse earns $100,000 and the other earns nothing, they can still contribute the maximum amount to two separate IRAs. The Spousal IRA allows the couple’s joint income to fund both accounts but does not increase the annual contribution limit for an individual.

Married Filing Separately

The rules for married couples who file separate tax returns are restrictive, particularly if they lived together at any point during the year. This filing status curtails the benefits of both Traditional and Roth IRAs. For taxpayers who file separately and are covered by a workplace retirement plan, the ability to deduct a Traditional IRA contribution is phased out for a MAGI between $0 and $10,000. Anyone earning more than $10,000 receives no deduction.

The limits for contributing to a Roth IRA are also stringent. For those using the married filing separately status, the ability to contribute is phased out for a MAGI between $0 and $10,000. These low income thresholds effectively eliminate the primary tax advantages of IRAs for most married individuals who file separate returns.