Spousal IRA Contribution Limits and Rules
Understand the tax rules that allow one spouse's earned income to fund a separate retirement account for their partner with little or no compensation.
A spousal Individual Retirement Arrangement (IRA) contribution allows a spouse with taxable compensation to contribute to an IRA for their spouse who has little or no income. This provision is an exception to the rule that an individual must have their own earned income to fund an IRA. The purpose is to ensure both partners in a marriage can build a retirement nest egg, regardless of their individual employment status during a given year.
Eligibility Requirements for a Spousal IRA
To be eligible for a spousal IRA contribution, a couple must satisfy requirements from the Internal Revenue Service. A primary condition is that the couple must be legally married and file a joint federal income tax return for the year the contribution is made. Filing separately disqualifies a couple from this provision.
The spouse who earns the income must have sufficient taxable compensation to cover the contributions for both their own IRA and the spousal IRA. Taxable compensation includes wages, salaries, commissions, self-employment income, and alimony. It does not include income from property, such as rent or interest, nor does it include pension or annuity income.
The spouse receiving the contribution must have either no compensation for the year or compensation that is less than the maximum annual IRA contribution limit. If the lower-earning spouse has some income below the contribution threshold, a spousal contribution can be made to make up the difference.
Calculating the Maximum Contribution Amount
The amount that can be contributed to a spousal IRA is governed by the same annual limits as all Traditional and Roth IRAs. For the 2025 tax year, the maximum contribution is $7,000 per person. This allows a working spouse to contribute up to $7,000 to their own IRA and another $7,000 to their spouse’s IRA, for a total of $14,000, subject to periodic cost-of-living adjustments.
If the spouse receiving the contribution is age 50 or older, they are eligible for a catch-up contribution. This allows an extra $1,000 to be added to their IRA, bringing their potential contribution to $8,000 for 2025. This catch-up amount can be contributed even if the income-earning spouse is under age 50.
The total combined contributions to both IRAs cannot exceed the taxable compensation on the couple’s joint tax return. For instance, if the annual limit for each spouse is $7,000 for a total of $14,000, but the working spouse’s taxable income was only $11,000, the total contribution for both spouses is capped at $11,000.
If the spouse receiving the funds has some earned income, it can be combined with the spousal contribution, but the total amount cannot exceed the annual limit. For example, if the limit is $7,000 and the lower-earning spouse earned $1,500, they could contribute that amount themselves. The higher-earning spouse could then contribute an additional $5,500 to the spousal IRA to reach the $7,000 maximum for that account.
How to Make a Spousal IRA Contribution
A spousal contribution must be made to a Traditional or Roth IRA set up separately in the name of the spouse receiving the funds. There is no special “spousal IRA” account type, as the term only describes the contribution rule. Each spouse maintains individual ownership of their respective IRA.
Choosing between a Traditional and a Roth IRA for the spouse is an important decision. Contributions to a Traditional IRA may be tax-deductible, reducing current taxable income, but withdrawals in retirement are taxed as ordinary income. Roth IRA contributions are made with after-tax dollars and are not deductible, but qualified distributions in retirement are tax-free.
The ability to contribute to a Roth IRA is subject to income limitations. For 2025, the option for married couples filing jointly is phased out if their Modified Adjusted Gross Income (MAGI) is between $236,000 and $246,000. The tax-deductibility of a Traditional IRA contribution can also be limited. If the contributing spouse is covered by a workplace retirement plan but the receiving spouse is not, the deduction for the spousal contribution is phased out with a MAGI in the same range.
Once the account is established and the type is chosen, the funds must be deposited before the tax filing deadline for that year, which is April 15. This contribution deadline cannot be extended, even if the couple files for an extension on their taxes.