When you think about saving for retirement, you might assume that only those who are working can contribute to an IRA (Individual Retirement Account). But what if you’re a stay-at-home spouse or a military spouse who moves frequently and takes career breaks? That’s where the Spousal IRA comes in—a powerful but often overlooked retirement savings tool.
What is a Spousal IRA?
A Spousal IRA allows a non-working or lower-earning spouse to contribute to an IRA using the income of the working spouse. This rule helps families continue building retirement savings, even if one spouse isn’t earning a paycheck.
How It Works
You must be married and file a joint tax return.
The working spouse must have enough earned income to cover both contributions.
Contributions follow standard IRA rules:
Traditional IRA: Contributions may be tax-deductible, and withdrawals in retirement are taxed.
Roth IRA: Contributions are made with after-tax money, but withdrawals in retirement are tax-free (as long as you meet eligibility requirements).
The 2025 contribution limit is $7,000 per person (or $8,000 if you’re 50 or older). That means a couple could contribute up to $14,000 or more annually, even if only one spouse is working.
Why This Matters for Women & Military Spouses
Many women and military spouses take time away from the workforce for caregiving, relocation, or other life transitions. This can leave gaps in retirement savings, making long-term financial security more challenging. A Spousal IRA ensures that both partners are building financial independence, even during career breaks.
Benefits for Military Families
PCS-Friendly: Frequent relocations make it harder for military spouses to keep steady employment. A Spousal IRA helps ensure retirement savings continue regardless of job changes.
Tax-Free Income Opportunities: If your working spouse is receiving tax-free combat pay, you can still contribute to a Roth IRA, taking advantage of tax-free growth and withdrawals.
Long-Term Security: With military pensions becoming less common, supplementing retirement savings is essential. A Spousal IRA helps bridge the gap.
How a Spousal IRA Helped Me in 2024
This topic is personal for me. In 2024, my husband contributed to my IRA because I had no earned income. It was the first time in years that I didn’t bring home a paycheck, and while I knew starting BayView Financial Planning was the right move, the financial insecurity of not earning an income weighed heavily on me.
I’ve spent my career helping women gain financial confidence, yet suddenly, I found myself in a position I had advised so many others through: transitioning, taking a financial leap, and facing the anxiety of what-ifs. My husband saw that, and without hesitation, he ensured that my retirement savings didn’t pause just because I was building something new. That contribution wasn’t just about the money—it was about security, partnership, and a shared vision for the future.
The Spousal IRA is one small but powerful tool that allows non-working or lower-earning spouses to continue building wealth, and I’m incredibly grateful that I had that option in 2024.
How to Get Started
1. Check Eligibility – Confirm that your household meets the joint tax filing and earned income requirements.
2. Choose Your IRA Type – Consider your tax situation and long-term goals (Traditional vs. Roth IRA).
3. Open an Account – Many brokerage firms and banks offer IRAs with low-cost investment options.
4. Set Up Contributions – Automate savings if possible to stay on track.
A Spousal IRA is a simple yet powerful way to build long-term financial security—even if you’re not earning an income today. If you want to explore how this fits into your overall financial plan, let’s chat!