Pair up on savings with spousal IRAs
Here's an IRA that can help give your spouse equal footing when it comes to investing for retirement.
What is a spousal IRA?
Typically you need earned income to contribute to an IRA, but a spousal IRA relaxes that requirement and gives a husband or wife with low or no annual wages a way to save tax-efficiently for the future too.
What it isn't: It's not a different IRA type but simply a Roth or traditional IRA that lets a nonworking spouse have access to the tax favors and benefits that IRAs offer.
If your spouse is earning low or no annual wages, your spouse may be able to open a spousal IRA to save tax-efficiently for retirement. It's not a joint account, but rather a separate IRA set up in your spouse's name. You must be married and filing a joint tax return in order to open a spousal IRA.
Learn more about types of IRAs
Advantages of a spousal IRA
A spousal IRA provides a way to boost your retirement savings as a couple. Plus the spouse gets access to the same wide variety of investment choices, ranging from mutual funds and exchange-traded funds (ETFs) to individual stocks and bonds.
And while the ${cf.content-variables.retire-acct-limits-cy.year} maximum annual contribution limit of ${cf.content-variables.retire-acct-limits-cy.tradUnderAge} (${cf.content-variables.retire-acct-limits-cy.tradOverAge} for investors age 50 or older) may not seem like much, contributing this amount each year could make a real difference in a couple's retirement savings over time.
Simplify your retirement savings with a rollover IRA
Move your old 401(k) or other employer plan into a flexible Vanguard IRA offering low-cost, high-quality investments. In just 3 steps you can have your retirement savings in one place—making it easier to take charge of your finances.