Spousal IRAs Offer Retirement Tax Break for Couples

Don't miss the 15 April deadline to maximize your 2025 retirement contributions.

Mar. 13, 2026 at 11:42am

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A little-known IRS rule allows married couples filing jointly to contribute to an IRA for a non-working spouse, even if only one partner has taxable income. This 'spousal IRA' can help one-income couples shelter up to $16,000 in tax-advantaged retirement savings per year, but many households are unaware of this opportunity.

Why it matters

Spousal IRAs are an important tool for couples where one partner temporarily leaves the workforce, whether for childcare, caregiving, education, or other reasons. Without this option, non-working spouses may lose years of retirement contributions, potentially leaving them with smaller savings later in life. Maximizing spousal IRA contributions can significantly boost a household's overall retirement readiness.

The details

Under IRS rules, a married couple filing jointly may contribute to an IRA for a spouse without taxable compensation, provided the working spouse earns enough to cover both contributions. For 2025, the limit is $7,000 per person, or $8,000 for those aged 50 and over. That means a couple aged 50 or above could put away up to $16,000 across two tax-advantaged accounts for the 2025 tax year. The deadline to make a 2025 traditional or Roth IRA contribution is 15 April 2026.

  • The deadline to make a 2025 traditional or Roth IRA contribution is 15 April 2026.

The players

Randy Bruns

Founder of the advisory firm Model Wealth in Naperville, Illinois.

Otto Rivera

Principal at advisory firm Mindful Wealth in the greater Orlando, Florida, area.

Christopher Giambrone

Co-founder of advisory firm CG Capital in New Hartford, New York.

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What they’re saying

“Spousal IRAs are one of the most overlooked tax breaks in retirement planning.”

— Randy Bruns, Founder (ibtimes.co.uk)

“Spousal IRAs can help keep retirement planning on track when one partner steps away from paid work.”

— Otto Rivera, Principal (ibtimes.co.uk)

“Many households already have substantial pre-tax savings through employer retirement plans. Traditional IRA contributions often provide an upfront tax deduction, but withdrawals during retirement are taxed as ordinary income.”

— Christopher Giambrone, Co-founder (ibtimes.co.uk)

What’s next

The window for 2025 contributions closes on 15 April 2026. After that, the chance to top up last year's savings is gone.

The takeaway

Spousal IRAs are a simple but powerful tool that can significantly boost a household's retirement savings, especially for couples where one partner temporarily leaves the workforce. Don't miss this tax-advantaged opportunity before the 2025 contribution deadline.