You Make the Call - Aug. 21, 2025

Question: During their midyear tax review, Guy and Laura, both age 52, asked about maximizing their retirement savings.
Laura will earn $95,000 in 2025 and has already contributed $8,000 to her traditional IRA. Guy is a stay-at-home parent with no earned income. While exploring ways to maximize the jointly filing couple’s tax-advantaged savings, you ask yourself whether Guy, as a nonworking spouse, is eligible for an IRA, and if so, what type and how much can he contribute?

Answer: Yes. Guy is eligible for an IRA, and he can choose between a traditional IRA or Roth IRA. Based on Laura’s compensation, he can contribute up to $8,000 ($7,000 plus 1,000).
With a joint return and a working spouse whose compensation equals or exceeds both contributions, the nonworking spouse can use a powerful retirement savings tool called the “spousal IRA” per §219(c).

Guy can choose a traditional IRA under §219(c) or a Roth IRA if eligible under §408A(c).
The annual contribution limits for a spousal IRA are the same as for any other traditional IRA. For 2025, the annual limit is $7,000 per spouse, or $8,000 each if age 50 or older.

• The couple’s combined IRA contributions cannot exceed the working spouse’s earnings, but Laura’s $95,000 salary easily covers both.
• At their $95,000 modified adjusted gross income (MAGI), they are also well below the 2025 Roth phase-out range for married filing jointly ($236,000-$246,000), so Guy qualifies for the full Roth contribution if they prefer that option.
  

Therefore, Guy can contribute up to $8,000 for 2025, even without personal earnings.