Grow a Spousal IRA Together, Even on One Income
We all pick up little bits of “financial wisdom” over the years and treat them as absolute truth. Until someone says something that makes us stop and go, “Wait, hold on. What?” Here’s one of those moments: Most people assume you can only contribute to an IRA if you personally earn income. Not true. Thanks to the spousal IRA rule, a non-working spouse may still contribute – using the working spouse’s income. That means both accounts may continue to receive contributions, even during periods when one spouse steps out of the workforce.
Is a spousal IRA different from a regular IRA?
Short answer: no. A “spousal IRA” isn’t a special product, a special account type, or something you have to request. It’s simply an IRS rule that expands eligibility. The account itself is the same Traditional or Roth IRA that everyone else uses. Same tax benefits. Same limits. Same investment options.
The only difference is how you qualify:
- Regular IRA: You personally have earned income.
- Spousal IRA: Your household has earned income, and you file jointly.
Once the money hits the account, the rules remain the same. “Spousal” just means one spouse earns income and, as a result, both spouses are eligible to contribute.
How the spousal IRA rule actually works
Life isn’t always two full-time incomes. Sometimes one spouse steps out of the workforce to raise children, care for family, go back to school, or take a career pause. The IRS acknowledges this reality – and the importance of not derailing retirement savings because of it.
Here’s what you need:
- You file a joint tax return.
- The working spouse earns enough income to cover contributions for both partners.
For 2025, each spouse can contribute:
- $7,000 (under age 50)
- $8,000 (age 50+)
For 2026, each spouse can contribute:
- $7,500 (under age 50)
- $8,600 (age 50+)
These limits apply per person, even if one spouse has no personal earned income.
Why this rule matters more than people think
For households with uneven or single incomes, this rule may expand tax. Earlier contributions also increase the time during which invested funds may grow, creating additional potential for long‑term compounding within an overall retirement strategy.
Making the most of the spousal IRA rule
If one spouse is not currently earning income, this approach may still allow both partners to save annually, provided the household meets IRS requirements. As long as one spouse has enough earned income to cover both contributions, each of you may potentially put away thousands every single year.
When deciding whether to use a Traditional IRA, Roth IRA, or a blend, consider:
- Your current tax bracket
- Expected retirement tax bracket
- Other retirement accounts you’re contributing to
- Whether you value tax savings now or tax-free withdrawals later
Working with a financial advisor may help you dial in the smartest mix for your family.
A spousal IRA is a simple and potentially effective way to keep retirement savings on track during periods when one partner isn’t earning income. It may allow for more years of compounding based on contributions and investment performance.
If your household qualifies, start planning now, and let every year be an opportunity to work toward a more flexible retirement for both of you.
About the Author: Katy McDonald, CFP®, is a Lead Advisor at Brighton Jones. She helps high-income professionals and families design tax-efficient investment strategies and retirement plans aligned with their values and long-term goals.
This content is for informational and educational purposes only and should not be construed as Brighton Jones, its affiliates, and employees do not provide personalized investment, financial, tax, or legal advice through this communication.
