To qualify for a spousal IRA, a couple must meet the following requirements:
- File jointly: The couple must file a joint tax return
- Have earned income: One spouse must have enough income to cover contributions for both parties
- Meet contribution limits: Contributions must adhere to normal IRA contribution limits, which are set by the IRS.
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In 2024, the contribution limit for a spousal IRA is $7,000 per year for those under age 50, and an additional $1,000 annually for those 50 and older. The total contribution cannot exceed the taxable earned income reported on the couple's tax return.
Spousal IRAs can be either traditional or Roth IRAs, and can be opened with any financial institution that offers IRAs, such as banks, brokerage firms, or investment companies. The IRA belongs to the individual whose name is on the account, not who funded the account, but spouses can share their account distributions in retirement.
