What it means
Normally you can only put money into an IRA up to your own taxable compensation. That leaves a spouse who stays home, studies or has low earnings with a small limit or none.
The spousal rule fixes this for joint filers. IRS Publication 590-A says that if you file a joint return and your taxable compensation is less than your spouse's, your limit is the smaller of two amounts.
The first is the general IRA limit, which the IRS says rises for 2026 to $7,500, or $8,600 if you are age 50 or older. The second is the couple's combined compensation, minus the spouse's traditional IRA contribution and any Roth IRA contribution made for the spouse.
It is not a separate type of account. Each spouse holds their own traditional or Roth IRA, and the money is owned by the person whose name is on it.
The label describes who is using the rule. The account choice still follows normal rules.
A traditional IRA deduction can be reduced if either spouse is covered by a workplace plan and income is high. Roth contributions phase out at higher income levels, and the IRS lists $242,000 to $252,000 of modified AGI for joint filers in 2026.
The rule is US-specific. Other countries have their own household or spousal retirement account rules, and some allow contributions to a partner's plan.
Check local rules, since limits and tax treatment change. Publication 590-A also says contributions must be made by the due date for the tax return, so a late deposit can miss the year.
If contributions exceed the limit, a penalty or additional tax may apply. A couple should track both accounts together, since the cap links them.
In practice
Real-world examples.
Example
A fictional couple in their 40s file jointly. One earns 90,000 and the other has no pay. Each can contribute up to 7,500 in 2026, so 15,000 goes into two IRAs, because their combined pay of 90,000 covers both.
Example
A fictional couple have combined pay of 9,000, all earned by one spouse who puts 7,500 into an IRA. The other spouse's limit is 9,000 minus 7,500, or 1,500. The spousal rule cannot create room beyond what the household earned.
Example
A fictional couple are both 55, with one earning 70,000 and one earning 4,000. The 2026 limit with the catch-up amount is 8,600 each. Together they can put in 17,200, since combined pay is far higher.
Formula
Calculation
Spouse's limit = the smaller of (general IRA limit) and (combined compensation - other spouse's traditional IRA contribution - Roth contributions for this spouse).
Worked example 1. For $90,000 of combined pay and a $7,500 contribution by the earner, the second amount is $90,000 - $7,500 = $82,500. The smaller of $7,500 and $82,500 is $7,500, so the other spouse can contribute the full general limit.
Worked example 2. A couple files jointly with combined compensation of $12,000, all earned by one spouse who contributes $7,500 to a traditional IRA. The second amount is $12,000 - $7,500 = $4,500, and the smaller of $7,500 and $4,500 is $4,500, so the other spouse's limit is only $4,500. The two contributions total $7,500 + $4,500 = $12,000, exactly the household's pay, which shows why the combined cap links the two accounts.Case study
Seen in the real world.
This case study is fictional and illustrative. Priya, 38, left work to care for her children while her husband Rahul earns 85,000. They file a joint return. Rahul contributes 7,500 to his own IRA for 2026.
Combined pay minus his contribution is 77,500, so Priya may also contribute up to 7,500. They open a Roth IRA for her because their income is below the phase-out range. Her account grows in her name, so it supports her own retirement. They deposit before the tax filing due date for that year.
Priya checks that the total of both contributions never exceeds household pay. The lesson is that her low income did not shut her out. Without the rule, her own pay of zero would have limited her to nothing. With it, the couple adds 7,500 a year to her retirement, or 75,000 over ten years before any growth.
Watch out
Common mistakes.
- Believing the account is a joint account, when each spouse owns their own IRA.
- Using the rule when filing separately, when the IRS describes it for joint returns.
- Ignoring the cap that combined contributions cannot exceed household pay.
Questions
People also ask.
What is a spousal IRA?
It is an IRA funded for a low-earning or non-working spouse using the rule for joint filers. The IRS names it the Kay Bailey Hutchison Spousal IRA limit. Each spouse still owns their own account.
Can a couple contribute twice the limit?
Yes, if joint pay is high enough. For 2026 the IRS lists $7,500 each, or $8,600 for those age 50 or older. That is $15,000 to $17,200 for a couple.
Does it work for a Roth IRA?
Yes, if income is under the Roth limits for the year. The IRS lists a phase-out starting at $242,000 for joint filers in 2026. Contributions to the spouse's traditional IRA are counted in the cap.
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