Can You Open a Roth IRA With Your Spouse? (2024)

Roth IRA Contribution Limits 2023
Filing Status	MAGI	Allowable Contribution
Married filing jointly or qualifying widow(er)	Less than $218,000	Up to the limit
Married filing jointly or qualifying widow(er)	At least $218,000 but less than $228,000	A reduced amount
Married filing jointly or qualifying widow(er)	$228,000 or higher	Zero
Married filing separately and you lived with your spouse at any time during the year	Less than $10,000	A reduced amount
Married filing separately and you lived with your spouse at any time during the year	$10,000 or higher	Zero
Single, head of household, or married filing separately and you did not live with your spouse at any time during the year	Less than $138,000	Up to the limit
Single, head of household, or married filing separately and you did not live with your spouse at any time during the year	At least $138,000 but less than $153,000	A reduced amount
Single, head of household, or married filing separately and you did not live with your spouse at any time during the year	$153,000 or higher	Zero

Source: Internal Revenue Service

The annual contribution limit for Roth IRAs is the same as the limit for traditional IRAs.

Opening a Roth IRA With a Spouse

Because IRS rules do not allow you to open a Roth IRA jointly with a spouse, you would each have to open your own Roth IRA to take advantage of the tax benefits. To open the account, at least one spouse is required to have earned income. If one spouse has a paid job but the other doesn’t, then the income-earning spouse can open a spousal IRA for the non-earning spouse instead.

The spouse who has earned income for the year funds the spousal IRA, but the non-earning spouse owns it. The working spouse can also have their own separate IRA. These can be Roth or traditional accounts.

There are some rules for spousal IRAs:

At least one spouse must have taxable earned income for the year.
The working spouse’s income must be at least the amount contributed to both IRAs.
Married couples must file a joint tax return.
Total contributions cannot exceed the annual IRA contribution limit.

If the spousal IRA is a Roth IRA, then it also must meet the income requirements for contributions to be allowed. Assuming that condition is met, it’s possible for married couples to contribute up to $12,000 to IRAs for 2022 or $14,000 if they’re both age 50 or older. For 2023, the amounts are $13,000 and $15,000, respectively.

Traditional IRAs allow for tax-deductible contributions; Roth IRAs do not.

Opening a Spousal IRA

Opening a spousal IRA isn’t that different from opening any other type of IRA. First, you need to choose a brokerage or other IRA custodian, which can be the same place where you currently have an IRA—if you wish.

Once you choose an IRA custodian, you can move through the account-opening process. This involves:

Selecting the spousal IRA option
Providing the requested information (i.e., your spouse’s name, date of birth, Social Security number, etc.)
Linking an external bank account for funding

You must decide whether you want to make the maximum allowed contribution for the year or set up ongoing monthly automatic contributions. You and your spouse also must decide which investments to hold in the account. Brokerages typically offer a range of mutual fund options, including exchange-traded funds (ETFs) and index funds.

When choosing investments, pay attention to the associated expense ratios and other fees.

Couples who establish a spousal IRA may be able to claim the retirement saver’s credit for additional tax savings. The amount of the credit is 50%, 20%, or 10% of the contributions that you make to a traditional or Roth IRA. For 2022, married couples filing jointly can claim the maximum credit if their adjusted gross income (AGI) is not more than $41,000. The credit phases out once AGI reaches $68,000. For 2023, the amounts are $43,500 and $73,000, respectively.

Can I Open a Roth Individual Retirement Account (Roth IRA) With My Spouse?

No. Individual retirement accounts (IRAs) are meant to be owned by a single individual only. A joint Roth IRA is not an option, but married couples who file a joint tax return can open spousal IRAs.

What Is a Spousal IRA?

A spousal IRA is an IRA that’s opened by one spouse on behalf of the other. The spouse who has taxable income for the year makes the contributions, but the non-earning spouse is the IRA owner.

How Much Can I Contribute to an IRA?

For 2022, the maximum annual contribution limit for traditional and Roth IRAs is $6,000 ($6,500 in 2023). An additional catch-up contribution of $1,000 is allowed for savers ages 50 and older for both 2022 and 2023. Your ability to make the full contribution to a Roth IRA depends on your filing status and modified adjusted gross income (MAGI).

The Bottom Line

While no one can open a Roth IRA jointly with their spouse, they can still help their spouse save for retirement. A spousal IRA allows couples an additional tax-advantaged way to reach their retirement savings goals together.

To maximize retirement savings, the income-earning spouse can coordinate contributions to a spousal IRA with contributions to their own IRA or employer-sponsored plan. They can also establish a joint taxable brokerage account with their spouse if they would like to invest in stocks, mutual funds, bonds, and other securities together.

As a seasoned financial expert with a comprehensive understanding of retirement planning and investment vehicles, including Individual Retirement Accounts (IRAs), I'm well-equipped to delve into the intricacies of Roth IRA contribution limits and related concepts.

The information you've provided pertains to Roth IRA contribution limits for the tax year 2023 based on different filing statuses and modified adjusted gross income (MAGI) brackets. This information is derived from the Internal Revenue Service (IRS), the authoritative source for tax-related matters in the United States.

Let's break down the key concepts covered in the article:

Roth IRA Contribution Limits (2023):
- For Married filing jointly or qualifying widow(er):
  - Less than $218,000 MAGI: Up to the limit
  - $218,000 to less than $228,000 MAGI: A reduced amount
  - $228,000 or higher MAGI: Zero contribution allowed
- For Married filing separately and lived with spouse:
  - Less than $10,000 MAGI: A reduced amount
  - $10,000 or higher MAGI: Zero contribution allowed
- For Single, head of household, or married filing separately and did not live with spouse:
  - Less than $138,000 MAGI: Up to the limit
  - $138,000 to less than $153,000 MAGI: A reduced amount
  - $153,000 or higher MAGI: Zero contribution allowed
Opening a Roth IRA With a Spouse:
- IRS rules don't allow joint Roth IRA ownership by spouses.
- Each spouse must open their own Roth IRA.
- At least one spouse needs earned income to open the account.
- Rules for spousal IRAs include taxable earned income, joint tax return filing, and total contributions not exceeding the annual limit.
Spousal IRA Rules:
- At least one spouse must have taxable earned income.
- The working spouse's income must be at least the sum contributed to both IRAs.
- Married couples must file a joint tax return.
- Total contributions cannot exceed the annual IRA contribution limit.
Contributions and Limits:
- Roth and traditional IRAs have the same annual contribution limit.
- Spousal IRAs allow married couples to contribute up to $12,000 for 2022 ($14,000 if both are 50 or older). For 2023, the limits are $13,000 and $15,000, respectively.
Opening a Spousal IRA:
- Similar process to opening any other IRA.
- Choose a custodian, provide spouse's information, and link a bank account.
- Decide on contribution frequency and investment choices, considering expense ratios and fees.
Retirement Saver's Credit:
- Couples with spousal IRAs may claim the retirement saver's credit, varying based on income.
- Income limits for claiming the maximum credit are provided for both 2022 and 2023.
Can I Open a Roth IRA With My Spouse?
- No, IRAs are for individual ownership.
- Married couples can open spousal IRAs for joint tax benefits.
Spousal IRA Definition:
- A spousal IRA is opened by one spouse on behalf of the other.
- The contributing spouse must have taxable income, but the non-earning spouse owns the IRA.
IRA Contribution Limits (General):
- For 2022, the maximum annual contribution limit for traditional and Roth IRAs is $6,000 ($6,500 in 2023).
- Additional catch-up contributions of $1,000 are allowed for savers aged 50 and older for both 2022 and 2023.

In conclusion, the provided information offers a comprehensive guide to Roth IRA contribution limits, spousal IRAs, and related considerations for maximizing retirement savings. If you have any further questions or need additional clarification, feel free to ask.