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New Member
posted Jun 29, 2024 7:03:34 PM

My wife does not have any income. How do I know if she is eligible for a spousal IRA, and if so, how much?

My financial advisor is recommending we fund a spousal IRA, if possible, and she is asking me to ask my tax preparer if my wife is eligible. Since I don't have a person, asking this question above. Is she eligible simply if her income is $0, or are there some more detailed eligibility requirements?

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2 Best answers
Level 15
Jun 30, 2024 9:20:27 AM

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. 

  • 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. 

Level 15
Jun 30, 2024 12:49:27 PM

and

 

  • The spouse for whom the spousal contribution is being made must have the lower compensation.

(That's certainly the case if the spouse for whom the spousal contribution is being made has zero compensation.)

2 Replies
Level 15
Jun 30, 2024 9:20:27 AM

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. 

  • 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. 

Level 15
Jun 30, 2024 12:49:27 PM

and

 

  • The spouse for whom the spousal contribution is being made must have the lower compensation.

(That's certainly the case if the spouse for whom the spousal contribution is being made has zero compensation.)