When it comes to building a strong financial future, retirement planning should be a team effort—even when only one spouse makes a paycheck. That’s where spousal IRAs come in. This often-overlooked strategy can be a smart, simple way to help both partners save for retirement, regardless of employment status.
What Is a Spousal IRA?
A spousal IRA is simply a traditional or Roth IRA that one spouse contributes to on behalf of the other—typically the spouse with little or no earned income.
The main requirement is that you must file a joint tax return. As long as the working spouse earns enough to cover both contributions, each spouse can fund their own IRA—opening the door to tax-advantaged retirement savings for both partners.
2025 Spousal IRA Contribution Limits
The IRS has increased IRA contribution limits for 2025, giving couples even more room to grow their retirement funds:
- $7,000 per person under age 50
- $8,000 per person age 50 or older (includes a $1,000 catch-up contribution)
This means a couple could contribute up to $14,000–$16,000 total, even if only one spouse has earned income.
Why It Matters
In many households, one spouse takes time away from the workforce to raise children, care for a family member, or support the family in other ways. Without earned income, that spouse typically can’t contribute to a retirement account. A spousal IRA changes that.
By funding both accounts, couples can ensure that both partners are building long-term financial security. It’s not just about equalizing savings—it’s about maximizing your household’s ability to prepare for the future.
Traditional vs. Roth Spousal IRAs
You can open a spousal IRA as either a traditional or Roth IRA, depending on your income and tax strategy:
- Traditional IRA: Contributions may be tax-deductible, depending on your income and whether the working spouse is covered by a workplace retirement plan.
- Roth IRA: Contributions are made with after-tax dollars, but qualified withdrawals in retirement are tax-free.
For 2025, couples earning less than $236,000 can contribute the full amount to a Roth IRA. Contributions phase out completely at $246,000.
How to Get Started
Setting up a spousal IRA is straightforward. The account must be opened in the non-working spouse’s name, and contributions must be made by April 15 of the following year (the tax filing deadline). Many financial institutions allow you to set up these accounts online or with the help of a financial advisor.
Let’s Make a Plan Together
At Dunn CPA Firm, we help couples think strategically about their entire financial picture—including smart, long-term retirement planning tools like spousal IRAs. If you’re looking for guidance on how to maximize your contributions, reduce your tax liability, or better prepare for retirement, we’re here to help.
