9104 / What special rules apply with respect to IRA contributions between spouses who are legally married?

In the case of a defined benefit plan, an individual who is not excluded under the eligibility provisions of the plan for the plan year ending with or within the individual’s taxable year is an active participant in the plan, regardless of whether such individual has elected to decline participation in the plan, has failed to make a mandatory contribution specified under the plan, or has failed to perform the minimum service required to accrue a benefit under the plan.⁴ An individual in a plan under which accruals all have ceased is not an active participant. Where benefits may vary with future compensation, all accruals are not considered to have ceased.⁵

In the case of a profit sharing or stock bonus plan, an individual is an active participant if any employer contribution is deemed added or any forfeiture is allocated to the individual’s account during the individual’s taxable year.⁶ A contribution is treated as made to an individual’s account on the later of the date the contribution is made or allocated.⁷

A married individual may make contributions to a Roth IRA for a non-working spouse if (a) statements (1) and (2) above apply, and (b) the adjusted gross income of the married couple is less than the applicable limits discussed in Q 3659.⁸ “Compensation” is generally earned compensation, such as wages or self-employment income, rather than interest income or Social Security benefits. The joint return rule implicitly requires that, except where one or both have died, the contributing individual and the contributing individual’s spouse have identical taxable years.⁹

An eligible individual may make contributions to a spousal IRA even if the individual does not own or contribute to an IRA for himself or herself.

If the income-earning spouse dies during the taxable year, the non-working spouse may contribute to the spousal IRA if a joint return is filed for the year. No amount may be contributed to the IRA of a deceased spouse (however, see Q 9105 for information on IRAs that are inherited by surviving spouses).¹⁰

The contributing individual must have been married to his or her spouse as of the last day of their tax year. An individual legally separated under a decree of divorce or separate maintenance is not married for these purposes.¹¹