My Spouse Doesn't Work — Can They Still Have an IRA? (Spousal IRA Rules for 2026)
My Spouse Doesn't Work — Can They Still Have an IRA?
Yes. As long as you're married, file a joint tax return, and the working spouse earns enough income to cover both contributions, a non-working spouse can have their own IRA — traditional or Roth — and contribute up to the full annual limit. This is known as a spousal IRA, and it's one of the most overlooked retirement tools for single-income households.
It's a question we hear often from families in Spartanburg and across the Upstate: one spouse works while the other stays home with the kids, cares for an aging parent, or has already stepped back from working. The working spouse has a 401(k) humming along, but the non-working spouse has... nothing. It can feel like the rules leave them out.
They don't. Here's how the spousal IRA works, what you can contribute in 2026, and the mistakes to avoid.
What is a spousal IRA?
A spousal IRA isn't a special account type — it's a regular traditional or Roth IRA that uses a special rule. Normally, you need your own earned income to contribute to an IRA. The spousal IRA rule makes an exception for married couples: the working spouse's income can count for both spouses.
The account belongs entirely to the non-working spouse. It's opened in their name, they own it, and they control it — the working spouse's income simply makes the contribution possible.
What are the requirements?
There are three, and all three must be met:
You must be married. Unmarried partners don't qualify, no matter how long you've been together.
You must file a joint tax return. Married couples filing separately cannot use the spousal IRA rule. This is the requirement that most often trips people up.
The working spouse must have enough earned income to cover both contributions. Earned income means wages, salary, tips, bonuses, commissions, or self-employment income. Investment income, rental income, pensions, and Social Security don't count.
That's it. There's no requirement that the non-working spouse has ever worked, and thanks to the SECURE Act, there's no longer an age limit on contributions either.
How much can we contribute in 2026?
For 2026, the IRA contribution limit is $7,500 per person, or $8,600 if you're age 50 or older (that includes the $1,100 catch-up contribution).
Because each spouse gets their own limit, a married couple can put away:
Both under 50: $7,500 to spouse 1 IRA and $7,500 to spouse two IRA for a total of $15,000
One over 50+ and one under 50: $8,600 to spouse over age 50 and $7,500 to spouse under age 50 for a total of $16,100.
Both age 50 or older: $8,600 for spouse one and $8,600 for spouse two for a total of $17,200.
The one catch: your combined contributions can't exceed the working spouse's earned income for the year. If the working spouse earned $12,000, the household total across both IRAs is capped at $12,000 — not $15,000.
Should the spousal IRA be traditional or Roth?
Both work — the choice comes down to when you want the tax benefits.
Traditional spousal IRA: contributions may be tax-deductible now, and withdrawals are taxed in retirement. Whether you can deduct the contribution depends on your income and whether the working spouse is covered by a retirement plan at work.
Roth spousal IRA: no deduction today, but qualified withdrawals in retirement are completely tax-free.
Common spousal IRA mistakes to avoid
Filing separately. The spousal IRA rule only works on a joint return. Couples who file separately for other reasons give this benefit up.
Assuming Social Security or pension income counts. A common scenario: one spouse retires and draws a pension while the other still works part-time. Only the earned income counts toward the contribution limit.
Leaving it in cash. Opening the account is step one; the contributions need to be invested to do their job. An IRA sitting in a money market fund for a decade is a missed opportunity measured in tens of thousands of dollars.
Why this matters more than it looks
A spousal IRA isn't just a tax move — it's retirement security in the non-working spouse's own name. Retirement assets held by one spouse can be complicated by divorce, death, or long-term care needs. An account owned outright by each spouse builds flexibility into your plan: two accounts mean two sets of beneficiary designations, more room for Roth conversions later, and more control over which dollars you tap first in retirement.
For a spouse who stepped away from a career to raise children or care for family, it's also simple fairness: their work didn't come with a 401(k), but it can still come with retirement savings.
Frequently asked questions
Can a stay-at-home mom or dad have a Roth IRA? Yes. As long as the couple is married, files jointly, and the working spouse has enough earned income, a stay-at-home parent can fully fund their own Roth IRA — up to $7,500 for 2026 ($8,600 if 50 or older), subject to the income limits above.
Does my spouse need to open the account at the same company as mine? No. The spousal IRA is a completely independent account and can be held at any brokerage or custodian.
Can we still use a spousal IRA if the working spouse maxes out their 401(k)? Yes. The 401(k) and IRA limits are separate.
What happens to the spousal IRA if we divorce? The account belongs to the spouse who owns it. Like other retirement assets, it may be considered in the division of marital property, but ownership and control of the account itself don't change automatically.
Is there an age limit for contributing? No. The SECURE Act removed the age cap on traditional IRA contributions. As long as there's qualifying earned income in the household, contributions can continue at any age — though required minimum distributions still begin on schedule for traditional IRAs.
Have questions about whether a spousal IRA fits your family's retirement plan? IntelliVest Wealth Management is a Registered Investment Advisor in Boiling Springs, South Carolina, serving families across Spartanburg and the Upstate. Book a free consultation — we're happy to run the numbers for your situation.
This article is for general information only and is not tax or investment advice. Consult a qualified professional about your individual circumstances.
Disclosures:
IntelliVest Wealth Management is a registered investment advisory firm headquartered in Spartanburg South Carolina. This is for educational purposes only and does not provide investment advice. Please consult a financial professional to answer any specific questions you have. This information can change from time to time so please make sure the information you read is up to date.
