A spousal IRA is a standard traditional or Roth IRA in a low-earning spouse's name funded with the working spouse's pay. Married couples filing jointly can use it within annual limits and income phaseouts, trading a current deduction for tax-free withdrawals later. The IRS describes it as not a separate account type. The IRS says combined contributions cannot exceed joint taxable pay, so earnings must cover both deposits, as explained on the IRS contribution limits page.
Table of Contents
- Who qualifies?
- How much can you contribute?
- What income limits apply?
- Should you choose Roth or deductible traditional?
- How to keep the contribution eligible?
Who qualifies?
You must be legally married and file a joint tax return to use the spousal rule. The IRS states this rule in IRS Publication 590-A.
The IRS says joint compensation must at least equal what you put in both IRAs. The same IRS rule bars married-filing-separately couples from using it, with a $0-$10,000 phaseout.
- legally married and filing jointly
- working spouse reports taxable compensation
- spousal IRA is owned in the low-earning spouse's name
How much can you contribute?
The IRS sets $7,000 per spouse for 2025, or $8,000 if age 50 or older. For 2026, the IRS sets $7,500 per spouse, or $8,600 if age 50 or older, as listed in the IRS 2026 limits announcement.
You can split each spouse's amount between traditional and Roth. For example, a couple under 50 could fund $7,000 in each IRA for 2025 if joint pay allows. If both spouses are 50 or older, each can use the higher limit.
What income limits apply?
Direct Roth contributions phase out at higher incomes. IRS ranges are $236,000-$246,000 of joint MAGI for 2025 and $242,000-$252,000 for 2026, with no direct contribution above the top. MAGI means modified adjusted gross income.
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Deductibility for a covered contributor is lower. IRS ranges phase out the joint deduction at $126,000-$146,000 for 2025 and $129,000-$149,000 for 2026 when the contributing spouse has workplace coverage. The IRS sets a higher cutoff when only the other spouse is covered. That spousal deduction phases out at $236,000-$246,000 for 2025 and $242,000-$252,000 for 2026, while couples with no coverage face no income cap.
Should you choose Roth or deductible traditional?
Deductible traditional contributions lower current taxable income, but withdrawals are taxed. Roth contributions give no current deduction, but qualified withdrawals are tax-free.
Vanguard and Federated Hermes frame this as timing of tax. Couples often compare their current bracket with their expected future bracket and split contributions to hedge. Bracket means the tax rate applied to your income.
How to keep the contribution eligible?
Open a separate IRA in the low-earning spouse's name. Confirm joint filing status and that joint pay covers both deposits.
Check MAGI against the Roth or deduction range before you contribute. Pick traditional, Roth, or a split based on current versus future tax.
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