You can contribute to an IRA without earning income if you file a joint tax return and your spouse has taxable compensation. This is known as a spousal IRA, and it allows a non-working spouse to save for retirement using the working spouse's income.
The IRS permits contributions to both traditional and Roth IRAs under this rule. The contribution limit for 2024 is $7,000 ($1,000 extra for those age 50 or older), and it applies to the combined contributions of both spouses. You cannot contribute more than your spouse's earned income, even if you have additional funds.
For example, if your spouse earns $60,000 annually and you earn nothing, you can each contribute up to $7,000 to your respective IRAs-provided the total doesn't exceed the spouse's earned income. If the spouse earns only $5,000, then the maximum combined contribution is $5,000, split between both accounts as desired.
A spousal IRA functions identically to a regular IRA but is funded based on the working spouse's earned income. The IRS defines "earned income" as wages, salaries, tips, self-employment income, and other compensation for services performed. Investment gains, pensions, and Social Security benefits do not count.
According to the IRS Publication 590-B, "You can contribute to an IRA for your spouse even if they don't have their own income." This provision exists to support married couples where one partner stays home to care for children or manage household duties.
For instance, a stay-at-home parent with no job can still contribute $7,000 to a Roth IRA in 2024 if their spouse earned at least $7,000 in taxable income. The contribution must be reported on the joint tax return, and the filing status must be "married filing jointly."
To qualify for a spousal IRA, you must meet these conditions:
For 2024, the maximum contribution is $7,000 per person, or $8,000 if age 50 or older. These limits apply to the combined contributions of both spouses. If the spouse earns $4,000, the most either spouse can contribute is $4,000 total-split however you choose.
| Spouse Earned Income | Max Combined Contribution | Max Individual Contribution |
|---|---|---|
| $5,000 | $5,000 | $5,000 |
| $7,000 | $7,000 | $7,000 |
| $10,000 | $7,000 | $7,000 |
Once the spouse's earned income exceeds the annual limit, no further contributions can be made-even if the couple has more money. For example, if the spouse earns $15,000, the maximum combined contribution remains $7,000.
Many people assume they can fund an IRA with savings, dividends, or investment returns. That's incorrect. The IRS requires actual earned income from work or self-employment. A non-working spouse cannot contribute based on passive income or gifts.
Another mistake is claiming a spousal IRA while filing separately. The IRS does not allow this. You must file jointly to use the spousal IRA provision. Filing separately disqualifies you even if both spouses have income.
A lesser-known point: you can contribute to a spousal IRA even if the working spouse doesn't have a job at the time of contribution-but only if they had earned income during the tax year. For example, if your spouse earned $50,000 in 2023 but quit in January 2024, you can still contribute to their spousal IRA in 2024 using that 2023 income.
Consider Maria and David, who file jointly. David earns $65,000 in 2024 as a software engineer. Maria stays home to care for their two children and earns no income. They want to maximize retirement savings.
David contributes $7,000 to his traditional IRA. Maria contributes $7,000 to her Roth IRA. Total contribution: $14,000. Since David's earned income ($65,000) exceeds the $14,000 contributed, the IRS treats this as valid. Both contributions are allowed under the spousal IRA rule.
If Maria had tried to contribute $7,000 without David's income, the IRS would disallow it. But because she's using David's earned income, the contribution is permitted.
Regular IRA contributions require personal earned income. Without it, you cannot contribute. But the spousal IRA bypasses this rule through joint filing and reliance on the working spouse's income.
For example, if a single person earns $0 in 2024, they cannot contribute to an IRA. But a married person with a non-working spouse can contribute up to $7,000 per account using the spouse's earned income.
The spousal IRA does not affect the non-working spouse's adjusted gross income (AGI). The contribution is treated as coming from the working spouse's income, so it doesn't increase the non-working spouse's AGI.
You cannot use a spousal IRA if you're not legally married or if you file as "single," "head of household," or "married filing separately." The IRS only recognizes the spousal IRA for joint filers.
Also, if the working spouse's earned income is less than the intended contribution, the excess is subject to a 6% penalty per year until corrected. For example, if the spouse earns $5,000 but $7,000 is contributed, the excess $2,000 incurs a 6% penalty annually.
Contributions to a traditional IRA may be deductible depending on your modified adjusted gross income (MAGI) and whether you or your spouse have access to an employer-sponsored plan. Roth IRA contributions are never deductible, but qualified withdrawals are tax-free.
Always report spousal IRA contributions on Form 8606 if you're contributing to a Roth IRA, and on Form 8029 if you're claiming a deduction for a traditional IRA. Missing these forms can trigger audits.