Not earning a paycheck doesn't mean you have to miss out on building your own retirement savings. In a recent blog post, personal finance expert Suze Orman points to a little-known strategy — the spousal IRA — as a powerful way for stay-at-home partners and caregivers to grow wealth for the future.
What Is a Spousal IRA?
A spousal IRA isn't a special account type — it's a way for a working spouse to contribute to an individual retirement account in the name of a non-working or low-earning spouse. Normally, you need earned income to put money into an IRA. The spousal IRA rule makes an exception, allowing the couple to use the working spouse's income to fund both partners' accounts.
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"You must be married and file a joint federal tax return," Orman explains. "That joint tax return must show earned income from earnings of the other spouse."
Each IRA is held in one person's name — there are no joint IRAs — but both can benefit from the combined savings in retirement.
How It Works
To qualify for a spousal IRA, you must:
- Be married and file a joint federal tax return.
- Have earned income from the working spouse that equals or exceeds the total contributions made to both IRAs.
In 2025, contribution limits are:
- $7,000 per person under age 50.
- $8,000 per person age 50 or older; this includes the $1,000 "catch-up" contribution.
If your joint modified adjusted gross income is under $236,000 in 2025, you can contribute the full amount to a Roth IRA. Above that, contribution limits begin to phase out.
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Roth IRA Advantages
Orman is a strong advocate for using a Roth IRA when eligible. With a Roth:
- Contributions are made with after-tax dollars, so you won't get a tax deduction now — but withdrawals in retirement are tax-free, as long as the account is at least five years old and you're 59½ or older.
- You can withdraw the contributions — but not earnings — at any time, tax- and penalty-free, which can offer emergency flexibility.
- Roth IRAs don't have required minimum distributions, giving you more control over when to use your savings.
"I hope you won't touch the money you contribute to a Roth IRA until you are retired," Orman says. "But I also want you to understand the rules, because in a bona fide emergency, the ability to use contributions to a Roth IRA without tax or penalty can be a valuable option."
The Long-Term Payoff
Orman notes that a stay-at-home spouse who invests $8,000 annually for 10 years, with a 7% annualized return, could see the account grow to more than $230,000 in 20 years — all potentially tax-free with a Roth.
"A spousal IRA is a fantastic way for a caregiver (kids, elderly parents) not currently in the workforce to help build household retirement security," she writes.
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Getting Started
Opening a spousal IRA is similar to setting up any other IRA. You choose between a traditional IRA, with upfront tax deductions for some households, or a Roth IRA, with tax-free withdrawals later, and then pick a bank, brokerage, or credit union to hold the account.
From there, you'll decide how to invest the funds — such as in mutual funds, ETFs, or individual stocks — based on your goals, time horizon, and risk tolerance.
Why It Matters
For many couples, one partner steps out of the workforce to raise children, care for aging relatives, or manage the household. Without earned income, that spouse may miss out on years — or even decades — of retirement contributions. A spousal IRA helps close that gap, ensuring both partners build their own nest egg for the future.
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