Regarding the spouse with a lower income and the spousal IRA

[SpartyTaxPayer]

I see this on the internet about the spousal IRA:

"Only the spouse with the lower compensation is eligible to use the other spouse's compensation to support their IRA contribution"

Does this mean "lower" as in zero earned income? Or is it also for a spouse who made minimal compensation?

For example, what if my wife is employed with an on-call job and made $200 (W2 wages) in 2022? Does she still qualify for the spousal IRA (assuming I qualify with all the other stipulations)? Or does she need to be NOT BE EMPLOYED?

[Bsch4477]

Lower means less than the higher earning spouse. It doesn’t mean zero. 

[DanaB27]

Yes, your wife would be able to make an IRA contribution in your example as long as your combined taxable compensation will cover the contribution.

"If you file a joint return and your taxable compensation is less than that of your spouse, the most that can be contributed for the year to your IRA is the smaller of the following two amounts.

• $6,000 ($7,000 if you are age 50 or older).
• The total compensation includible in the gross income of both you and your spouse for the year, reduced by the following two amounts:

1. Your spouse's IRA contribution for the year to a traditional IRA.
2. Any contributions for the year to a Roth IRA on behalf of your spouse." (IRS)