What Is a Spousal IRA? Retirement Savings for Non-Working Spouses

a Spousal IRA? Retirement Savings for Non refers to a set of financial strategies and principles designed to help individuals and families achieve long-term financial security and make informed decisions about their wealth.

How Spousal IRAs Work

• Must be married filing jointly
• Working spouse needs earned income ≥ total IRA contributions
• Each spouse owns their own separate IRA
• Same contribution limits as regular IRAs

Contribution Limits (2026)

• Under 50: $7,000 per spouse ($14,000 total)
• 50 or older: $8,000 per spouse ($16,000 total)
• Combined earned income must cover total contributions

Traditional vs. Roth Spousal IRA

• Traditional: Tax deduction now (if eligible), taxed at withdrawal
• Roth: No deduction, but tax-free growth and withdrawals
• Income limits apply to Roth contributions and Traditional deductions

Steps to Get Started

Follow these steps to take action on this topic:

1. Step 1: Assess Your Current Situation - Review your current financial position and goals
2. Step 2: Gather Information - Collect relevant documents and research your options
3. Step 3: Consult a Professional - Work with a fiduciary advisor like Brett Henderson for personalized guidance
4. Step 4: Create Your Plan - Develop a customized strategy based on your unique circumstances
5. Step 5: Implement and Monitor - Execute your plan and review it regularly

Frequently Asked Questions

Can my spouse contribute to an IRA if they don't work?

Yes, as long as you file jointly and have enough earned income to cover both contributions. The non-working spouse owns their own IRA.

What if my spouse has a small amount of income?

They can still contribute to a spousal IRA. Your combined earned income just needs to equal or exceed total IRA contributions.

Article by Brett R. Henderson, CIMA®, CPFA®, CRPS®, CEPA®, AIF®, CLU®, BFA™ — Fiduciary Financial Advisor serving Hermosa Beach, South Bay Los Angeles, and clients nationwide. Published 2026. This is educational content; consult a qualified professional for personalized advice.

How Do Different Strategies Compare?

Strategy	Best For	Key Benefit	Consideration
Traditional 401(k)	High earners today	Tax deduction now	Taxed on withdrawal
Roth 401(k)	Lower earners / young savers	Tax-free growth	No upfront deduction
IRA Rollover	Job changers	More investment options	Rollover rules apply
Annuity	Risk-averse retirees	contractual income	Less liquidity

What Steps Should You Take Next?

Taking action on your retirement plan is essential for long-term financial security. Here are the recommended next steps based on where you are in your financial journey:

• Assess your current situation: Review your retirement account balances, current savings rate, and expected Social Security benefits. According to the Social Security Administration, the average monthly benefit in 2024 is approximately $1,907.
• Maximize employer matching: If your employer offers a 401(k) match, contribute at least enough to capture the full match. This is essentially matching funds that can significantly accelerate your retirement savings over time.
• Consider catch-up contributions: If you are age 50 or older, the IRS allows additional catch-up contributions to 401(k) plans and IRAs, which can help close any savings gap.
• Review your investment allocation: Ensure your portfolio aligns with your risk tolerance and time horizon. A diversified mix of stocks, bonds, and other assets appropriate for your age can help manage risk while pursuing growth.
• Create a withdrawal strategy: Plan how you will draw down your savings in retirement to minimize taxes and maximize longevity of your assets.

According to data from the Department of Labor, workers who have a written financial plan accumulate significantly more retirement savings than those who do not. Taking these steps now can make a meaningful difference in your retirement readiness.

How to Build a Retirement Plan: Step-by-Step

Follow these steps to create a solid retirement strategy:

1. Step 1: Calculate your retirement number. Estimate your annual retirement expenses and multiply by 25 (based on the 4% withdrawal rule). This gives you a savings target.
2. Step 2: Assess your current savings gap. Compare your current retirement accounts, Social Security projections, and any pension income against your target number.
3. Step 3: Maximize tax-advantaged contributions. Contribute the maximum to your 401(k), IRA, and HSA accounts. If you are over 50, take advantage of catch-up contributions allowed by the IRS.
4. Step 4: Optimize your investment allocation. Ensure your portfolio mix of stocks, bonds, and other assets aligns with your risk tolerance and time horizon, following guidance from the SEC.
5. Step 5: Plan your Social Security strategy. Use the SSA benefit estimator to model different claiming ages and choose the optimal strategy.
6. Step 6: Create a tax-efficient withdrawal plan. Determine the order in which you will draw from taxable, tax-deferred, and tax-free accounts to minimize your lifetime tax burden.
7. Step 7: Review and adjust annually. Meet with a fiduciary advisor at least once a year to review your progress, rebalance your portfolio, and adjust for changes in tax law or personal circumstances.

A qualified fiduciary advisor from SWE90 can guide you through each step and create a personalized plan tailored to your unique situation. Schedule your free consultation today.