Spousal IRA

DEFINITION of 'Spousal IRA'

A type of individual retirement account that allows a working spouse to contribute to a nonworking spouse's retirement savings. A spousal IRA creates an exception to the provision that an individual must have earned income to contribute to an IRA. The working spouse's income, however, must equal or exceed the total IRA contributions made on behalf of both spouses.

BREAKING DOWN 'Spousal IRA'

To qualify to make spousal IRA contributions, the couple also must file a joint tax return. Spousal IRAs can be either traditional or Roth IRAs, and are subject to the same annual contribution limits, income limits and catch-up contribution provisions as traditional and Roth IRAs. While IRAs cannot be held jointly in both spouse's names, spouses can share their account distributions in retirement.

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RELATED FAQS
  1. What are the contribution limits for a Spousal IRA?

    Contributing to a spousal IRA for a nonworking spouse is a way of investing in a robust retirement fund for both members ... Read Answer >>
  2. What are the rules and restrictions on a Spousal IRA?

    Learn about the rules pertaining to spousal individual retirement account contribution and income limits. Find different ... Read Answer >>
  3. What would our MAGI limits be if we both contribute to a Roth?

    My spouse and I are both over 50. One is non-working and one is a working spouse with a 401k. Our total MAGI was about ... Read Answer >>
  4. What can I contribute to my Roth 401k and Roth IRA?

    If I contribute all of my compensation ($13,000) to a Roth 401k, can I also contribute $6,500 to a Roth IRA for me and $6,5 ... Read Answer >>
  5. My spouse has little/no income. Can I contribute to my spouse's IRA?

    Yes. You may make a Traditional IRA contribution to your spouse's Traditional IRA because you have eligible compensation.There ... Read Answer >>
  6. How do I roll over a spousal IRA?

    To roll over a spousal IRA, the surviving spouse can transfer the remaining funds from the deceased spouse's investing IRA ... Read Answer >>
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