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.
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Information included in this article is accurate as of the publish date. This post is not reflective of tax law changes or IRS guidance that may have occurred after the date of publishing.