Spousal IRAs Explained: Retirement Savings Rules for 2026
Not all married couples earn dual incomes. During the course of a marriage, one spouse may leave the workforce to care for a family member, manage personal health needs, or support other family priorities. Regardless of whether this break from work is temporary or long‑term, retirement savings may still remain an important financial goal.
Fortunately, married couples filing jointly may still be able to save for retirement using a spousal individual retirement account (IRA)—even if one spouse has little or no earned income. Understanding how spousal IRAs work, along with contribution limits and income phaseouts, can help couples make informed decisions for the 2025 tax year.
What Is a Spousal IRA?
A spousal IRA allows a nonworking or lower‑earning spouse to contribute to an IRA based on the working spouse’s earned income. While often referred to informally as a “spousal IRA,” the account must be established in the name of the nonworking spouse and is owned solely by that individual.¹
In addition, eligible IRA contributions for the 2025 tax year may generally be made through April 15, 2026, even if the contribution is made after the calendar year ends.² In certain situations, traditional IRA contributions may also provide a tax deduction when filing a joint return.
Rules for Nonworking Spouses
For the 2025 tax year, a nonworking spouse may be able to contribute up to $7,000 to a traditional IRA, or $8,000 if age 50 or older as of December 31, 2025.¹ To qualify for a spousal IRA contribution, two requirements must be met:
- The couple must file a joint federal income tax return.¹
- The couple’s combined earned income must at least equal the total IRA contributions made by both spouses.¹
Income Phaseouts and Deductibility
If the working spouse participates in a qualified retirement plan through employment or self‑employment, the deductibility of the nonworking spouse’s traditional IRA contribution is subject to income limits. For 2025, the deduction is phased out for joint filers with modified adjusted gross income (MAGI) between $236,000 and $246,000.¹
If the working spouse does not participate in a qualified retirement plan, the nonworking spouse may be eligible to make a fully deductible traditional IRA contribution, regardless of joint MAGI.¹
If income exceeds the applicable phaseout range, nondeductible traditional IRA contributions may still be permitted.
Rules for Working Spouses
Contribution rules also apply to the working spouse. If neither spouse participates in a qualified retirement plan, the working spouse may make a fully deductible traditional IRA contribution of up to $7,000 for 2025 (or $8,000 if age 50 or older).¹
If the working spouse does participate in a qualified retirement plan, the deductibility of their traditional IRA contribution is phased out for joint filers with MAGI between $126,000 and $146,000 for the 2025 tax year.¹ Above this range, contributions may still be allowed but may not be deductible.
Illustrative Examples
Example 1:
Timothy and Tamara are married filing jointly and both age 40. Their joint MAGI for 2025 is $175,000. Tamara participates in a qualified retirement plan through her employer, while Timothy does not work outside the home.
- Tamara cannot make a deductible traditional IRA contribution due to income limits.
- Timothy may still make a fully deductible spousal IRA contribution of up to $7,000 because their MAGI is below the nonworking spouse phaseout threshold.¹
Example 2:
Addie (age 35) and Adam (age 40) file jointly and have a joint MAGI of $800,000. Neither spouse participates in a qualified retirement plan.
- Despite their high income, both spouses may make fully deductible traditional IRA contributions of up to $7,000 for 2025.¹
Roth IRA Contributions and Income Limits
Unlike traditional IRAs, Roth IRA contributions are not deductible, but qualified withdrawals—including earnings—may be tax‑free in retirement. To qualify, the account must be open for at least five years, and the account holder must be age 59½ or older at the time of withdrawal.¹
For the 2025 tax year, Roth IRA contributions for married couples filing jointly are phased out between MAGI of $236,000 and $246,000.¹ Eligibility to contribute to a Roth IRA does not depend on whether either spouse participates in a qualified retirement plan.¹
Important Contribution Limit Reminder
The $7,000 annual IRA limit ($8,000 if age 50 or older) applies to the combined total of all traditional and Roth IRA contributions per individual for the 2025 tax year.¹ A taxpayer cannot contribute the maximum amount to both account types in the same year.
Making Informed Retirement Decisions
Leaving the workforce does not necessarily mean pausing retirement savings. However, IRA contribution and deductibility rules can vary significantly based on income, filing status, and retirement plan participation.
Working closely with a tax advisor can help ensure retirement contributions align with long‑term goals while optimizing tax outcomes.
Sources
Internal Revenue Service, Publication 590‑A (2025), Contributions to Individual Retirement Arrangements (IRAs)
https://www.irs.gov/publications/p590aFidelity Investments, IRA Contribution Deadlines for 2025
https://www.fidelity.com/learning-center/smart-money/ira-contribution-deadline
For educational purposes only. Nothing in this article is intended as individualized investment advice. PKS Investment Advisors, LLC (“PKS”) is a registered investment advisor with the Securities and Exchange Commission. Reference to registration does not imply any particular level of qualification or skill. PKS does not provide tax or legal advice; you should consult with your trusted tax or legal professionals before acting on any suggestions in this article. Examples and illustrations are purely hypothetical in nature, and do not represent actual PKS clients. Past performance is no guarantee of future performance.
