Spousal IRA Rule Lets a Working Spouse Fund a Retired Partner's Account
A retired spouse with no earned income can still contribute up to $8,600 to an IRA in 2026 if the working spouse funds it, they file jointly, and the working spouse's pay covers both contributions. A $95,000 salary can shelter $49,700 across a 401(k), an IRA, and a spousal IRA. For people over age 70½ who give to charity, deductible IRA contributions can reduce future tax-free charitable distributions, so Roth contributions may be better.
The spousal IRA rule comes from Section 219(c) of the Internal Revenue Code. It lets one spouse’s taxable compensation support contributions to an IRA owned by the other spouse, provided the couple files jointly and their combined IRA deposits do not exceed their joint taxable compensation. Social Security, pensions, rent, interest, and dividends do not satisfy the compensation requirement.
The SECURE Act ended the old rule that stopped traditional IRA contributions at age 70½. A 401(k) has no age limit for workers still on payroll. In the article’s 2026 example, a $95,000 salary funds a $32,500 401(k) deferral, two $8,600 IRA contributions, and $49,700 total household retirement savings.
This rule may matter most to married couples with uneven earnings or one retired partner, especially older households trying to balance retirement savings and taxes. It could allow more families to keep contributing after one spouse leaves work, potentially increasing long-term retirement resources. For charitable givers over 70½, the choice between deductible and Roth IRAs may affect future giving and tax planning. The benefit depends on joint filing, sufficient earned income, and staying within contribution limits.