Married couples filing jointly can fund two full IRAs using one spouse’s earnings, avoiding a 6% penalty for non-earners.
The IRS spousal IRA rule permits married couples filing jointly to contribute to two individual retirement accounts using a single paycheck, even if one spouse has no earned income. Contributions for 2026 must be made by April 15, 2027, or risk miscoding by custodians.
Under Internal Revenue Code Section 219(c), the working spouse’s income qualifies as compensation for the non-earning spouse, enabling full IRA funding. Filing separately, however, triggers a 6% annual penalty on the non-earner’s contribution until withdrawn.
The provision aims to prevent retirement savings gaps for stay-at-home partners, though many couples remain unaware of the option due to limited visibility in tax software.