Spousal IRA Deduction Limits
| If your MAGI as a married couple filing jointly is… | You can take… |
|---|---|
| $105,000 or less | a full deduction up to the contribution limit |
| more than $105,000 but less than $125,000 | a partial deduction |
| $125,000 or more | no deduction |
Can my wife and I both contribute to traditional IRA?
There is no special type of IRA for spouses, instead the rule allows non-working spouses to contribute to a traditional IRA or a Roth IRA—provided they file a joint tax return with their working spouse. Individual retirement accounts opened under the spousal IRA rules are not co-owned.
For 2020, a married couple filing jointly with a modified adjusted gross income (MAGI) of up to $196,000 (and $198,000 in 2021) is eligible to contribute the full amount to each of their Roth IRAs.
Can a married couple have a joint IRA?
An IRA cannot be held jointly by spouses. It can only be held in one individual’s name.
Can a working spouse contribute to a spousal IRA?
A spousal IRA is an individual retirement account to which a working spouse contributes on behalf of a spouse who earns little or no income. This is an exception to the rule that a person must have earned income in order to contribute to an IRA.
What kind of account is a spousal IRA?
A spousal IRA is a type of individual retirement account that allows a working spouse to contribute to a nonworking spouse’s retirement savings.
Can a non working spouse open a Roth IRA?
IRAs have strict income limits, and those rules apply here. A nonworking spouse can open a traditional IRA or a Roth, but only if he or she qualifies. See this page for income and other limits for both types of IRAs. Note: A spousal IRA is simply an ordinary IRA in the spouse’s name. The spousal IRA is not co-owned.
How much can a married couple contribute to an IRA?
A married couple could contribute $12,000 to two IRAs, or $14,000 if they’re 50 or older. 3
