Spousal IRAs in 2025: A Smart Retirement Strategy for Married Couples

For married couples where one spouse earns income and the other has little or no earned income, a Spousal IRA can be a powerful way to double up on retirement savings; even if one partner is not working. This info sheet breaks down how Spousal IRAs work, who should consider them, and what income thresholds apply for Traditional and Roth IRAs in 2025.

 

✅ What Is a Spousal IRA?

A Spousal IRA isn’t a special type of account. It’s a Traditional or Roth IRA funded by a working spouse on behalf of a non-working or lower-earning spouse.

This strategy allows both spouses to contribute up to the annual IRA limit, even if only one spouse earns income (effectively doubling a couple’s annual retirement contributions).

2025 Contribution Limits:

• $7,000 per person under age 50
• $8,000 per person age 50+ (includes $1,000 catch-up)
• Contributions can be made to both a Traditional IRA and a Roth IRA, subject to income limits.

Why Use a Spousal IRA?

• Boost household retirement savings when only one spouse earns income.
• Lower taxable income now (Traditional IRA) or grow tax-free (Roth IRA).
• Great tool for stay-at-home parents, caregivers, or part-time earners.

🏦 Tax Advantages of an IRA

There are two major tax benefits, depending on which type of IRA you choose:

 

📊 2025 Income Limits and Phase-Out Ranges

Roth IRA Income Limits 2025

Filing Status	Full Contribution	Phase-Out Begins	No Contribution
Married Filing Jointly	< $236,000	$236,000	≥ $246,000
Single / HOH	< $150,000	$150,000	≥ $165,000
Married Filing Separately*	N/A	$0	≥ $10,000

*If you lived with your spouse at any time during the year.

🧾 Traditional IRA Deductibility (2025 IRS Pub 590-A Updates)

If your spouse is covered by a retirement plan at work and you are not:

• Deduction is phased out if your Modified AGI is $236,000–$246,000
• No deduction allowed if your Modified AGI is $246,000+

📌 Who Should Consider a Spousal IRA?

• Married couples with one primary earner
• Households with stay-at-home parents or caregivers
• Couples seeking to maximize tax-advantaged savings
• Those who want to equalize retirement savings between partners

👥 Work with a Professional

Choosing between a Traditional or Roth Spousal IRA, and understanding the phase-out limits, is key to building a successful long-term strategy. The McFee Financial Group team is here to help you navigate your options and align your contributions with your overall financial plan.

Always consult with your CPA or tax professional to understand how a Spousal IRA fits into your specific tax situation.

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