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What is a Spousal IRA

Spousal IRAs can be an effective way to save for retirement if one of the two spouses is a stay at home parent or does not have earned income. A spousal IRA is an IRA that is owned by the non-working spouse that the working spouse contributes to.

In order to contribute to a spousal IRA, the following conditions must be met:

  • Your tax filing status must be Married Filing Jointly
  • The IRA must be in the name of the non-working spouse. You cannot have a “Joint IRA”
  • The working spouse must have earned income that exceeds the amount of contributions for both the working spouse’s IRA and the non-working spouses’ IRA

For the most part, the rules are the same for a spousal IRA as for a regular IRA. The numbers below are based on IRS guidelines for the 2025 tax year. For the most current information, visit www.irs.gov.

  • The contribution limits for an IRA in 2025 are $7,000 if you are under the age of 50 with a $1,000 “catchup” provision if you are 50+
  • The income limits for contributing to a Roth IRA for Married Filing Jointly: Contribution limits start to get phased out starting at a Modified Adjusted Gross Income (MAGI) of $236,000 and fully phased out at MAGI of $246,000.
  • After the Spouse turns 73, they will be required to take distributions if the spousal IRA is a traditional IRA.

The deductibility of spousal IRA contributions depends upon whether or not the working spouse participates in an employer-sponsored retirement plan and their income. If the working spouse does not participate in the employer-sponsored retirement plan, then the contributions to a spousal IRA are fully deductible. However, if the working spouse is covered by an employer-sponsored plan and their income exceeds certain limits, then the contributions to the spousal IRA are not fully deductible. Deductibility of traditional IRA contributions is subject to IRS income thresholds and may be limited based on participation in a workplace retirement plan.

How to open a Spousal IRA at Embark:

The spouse will have to open a Roth or Traditional IRA account in their own name, with a separate email address. Through the new login you are able to link your shared bank account and fund the spouse’s IRA.

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Last updated June 4, 2025

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