What Retirement Accounts Can Be Held Jointly?

While you can jointly own bank accounts and many other financial accounts, retirement accounts like IRAs and 401(k)s are inherently individual. That means each person must open and maintain their own retirement account. The IRS does not permit sharing these accounts between spouses or any other individuals. Spousal IRAs represent an exception that allows a working spouse to contribute on behalf of a non-working or lower-earning spouse, ensuring both can benefit from retirement savings.

For help creating a retirement plan, ask a financial advisor about specific strategies for your financial goals.

Can You Have a Joint Retirement Account?

Each type of retirement account, such as an individual retirement account (IRA) or a 401(k), has features that set it apart.

However, the one thing they all share is that they are individual accounts. Unlike joint bank accounts, retirement accounts are strictly owned by one person.

IRAs

An IRA is exactly what its name implies – individual. This means that a single person owns each account.

The IRS does not permit IRAs to be shared between spouses or any other individuals. Each person must open their own IRA to take advantage of the tax benefits these accounts offer.

401(k)s

Similarly, 401(k)s and other workplace retirement plans are also individual accounts. Employers sponsor these plans, which belong to each individual employee.

While spouses can be beneficiaries of these accounts, they cannot be joint owners. Each spouse must set up their own 401(k) account through their respective employers if they both want to participate in this type of retirement savings plan.

What Is a Spousal IRA?

Although joint IRAs or 401(k)s do not exist, there are alternative ways for couples to save for retirement together. For example, spousal IRAs allow a working spouse to contribute to an IRA on behalf of a non-working or lower-earning spouse. ¹  

This provision helps couples save for retirement even if one spouse does not have earned income. A spousal IRA operates under the same rules as traditional and Roth IRAs, providing a flexible way to boost retirement savings.

Eligibility Requirements

To qualify for a spousal IRA, the couple must file a joint tax return. The working spouse must have enough earned income to cover the retirement account contributions for both spouses.

The non-working spouse must be under the age of 70 1⁄2 for a traditional IRA. However, they can contribute to a Roth IRA regardless of age, as long as the couple’s adjusted gross income (AGI) falls within the allowable limits for Roth contributions.

Spousal IRA Contribution Limits for 2026

The annual contribution limit for a spousal IRA is the same as for individual IRAs. For 2026, each spouse can contribute up to $7,500, or $8,600 if they are age 50 or older. These limits apply to both traditional and Roth IRAs. 

Consider a married couple where one spouse works full-time outside the home and the other is a stay-at-home parent. The income-generating spouse earns $90,000 a year, which covers their living expenses and still allows for retirement contributions.

This spouse can contribute $7,500 to their own IRA and another $7,500 to the stay-at-home spouse’s spousal IRA. If they are both over 50, they each can contribute an additional $1,100 for a total annual contribution of $17,200.

How to Open a Spousal IRA

When opening a spousal IRA, you must decide between a traditional IRA and a Roth IRA.

• Traditional IRA contributions. Contributions to a Traditional IRA may be tax-deductible, while withdrawals are taxed.
• Roth IRA contributions. Roth IRA contributions use after-tax dollars, allowing for tax-free withdrawals in retirement.

Your choice depends on your current tax situation and retirement goals.

The process from there is simple.

1. Choose a financial institution to hold the IRA, such as a bank, a brokerage or a mutual fund company.
2. Complete the application process by providing your personal information and selecting the IRA type.
3. Make contributions either via lump sum or regular deposits, ensuring you do not exceed the annual contribution limits.

Naming a Beneficiary on Your Account

Naming a beneficiary for your spousal IRA is a key step in retirement planning.

A beneficiary is the person who will inherit the funds in the IRA upon the account holder’s death. This ensures the smooth transfer of assets and can help avoid probate.

To name a beneficiary for a spousal IRA, complete the beneficiary designation form provided by the IRA custodian. This form typically asks for the beneficiary’s name, relationship to the account holder and Social Security number.

Be sure to review and update beneficiary designations periodically. This is especially important after significant life events like marriage, divorce or the birth of a child.

While a spouse is often the primary beneficiary, you may also name contingent beneficiaries. Contingent beneficiaries inherit the account if the primary beneficiary predeceases the account holder. This strategy provides a backup plan, ensuring the assets pass on as you wish.

Designating a beneficiary for a spousal IRA can offer tax advantages. For example, a surviving spouse can roll over the inherited IRA into their own IRA, allowing the assets to continue to grow tax-deferred. A spouse beneficiary can also keep the spousal IRA as an inherited account and take distributions based on their own life expectancy. 

Some non-spouse beneficiaries, including minor children and disabled individuals, can take distributions based on their own life expectancy. They can instead elect to take distributions according to the original account owner’s remaining life expectancy. 

How a Spousal IRA Fits Into Your Broader Retirement Plan

Opening a spousal IRA is a straightforward decision. To maximize its benefit, consider how it works alongside a 401(k), Social Security and other retirement income sources the couple expects to have.

Traditional vs. Roth IRA

The first question is whether to use a traditional or Roth spousal IRA. The answer depends on where the couple expects their tax rate to land in retirement relative to today.

If the working spouse is in a higher bracket now and expects a lower rate later, traditional contributions may make more sense, since the deduction is worth more at a higher current rate.

If combined retirement income is likely to push them into a similar or higher bracket, Roth contributions allow the money to grow before you withdraw them tax-free. This can be a significant advantage over a long retirement.

Savings

Deciding how to allocate savings across both spouses’ accounts is worth thinking through as well. If the working spouse has access to an employer match through a 401(k), capturing the full match is typically the priority. From there, directing additional savings toward a Roth or spousal IRA depends on income limits, the tax bracket and how much withdrawal flexibility the couple wants later.

RMDs

It is also worth considering how both spouses’ traditional IRA balances will interact with required minimum distributions (RMDs) at age 73. If both accounts are drawing down simultaneously, combined income can push the couple into a higher bracket than either anticipated. Building more Roth assets earlier, particularly for the spouse with the larger traditional balance, can help manage that exposure down the road.

Social Security

Social Security timing adds another layer. A well-funded spousal IRA can serve as a bridge in the years before benefits begin. It can allow the couple to delay claiming and lock in a higher permanent benefit without drawing down the working spouse’s 401(k) earlier than planned.

Other Types of Joint Accounts

Traditional joint bank accounts don’t offer tax benefits. However, couples can still save for retirement using these accounts, as they allow both partners to contribute and manage their funds.

This approach may be a good fit for someone who prefers a simple approach to saving with easy access and control over their total assets. Joint bank accounts can include savings and money market accounts.

Joint brokerage accounts are another option for couples planning their retirement together. These accounts enable both partners to invest in stocks, bonds, mutual funds and other securities, allowing for a diversified investment strategy. They can also offer higher returns.

Bottom Line

While spouses cannot share individual retirement accounts (IRAs) and 401(k)s, a spousal IRA allows couples to accumulate retirement savings together. Subject to contribution limits and other rules, one partner who earns income can contribute to a tax-advantaged account for the other partner. With careful planning and regular reviews, spousal IRAs can be a strategic component of a comprehensive retirement plan.

Retirement Planning Tips

• A financial advisor can help you create a personalized retirement plan. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
• SmartAsset’s retirement calculator can tell you today whether you’re saving enough for a comfortable and secure retirement, even if it’s still decades away.

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