Why Married Couples Can't Own a Joint IRA Account (And What to Do Instead)

Many married couples naturally assume they can manage retirement accounts together, but here’s the reality: the IRS prohibits joint ownership of tax-advantaged retirement accounts, including Roth IRAs. Even spouses cannot bypass this rule. Let’s explore why this restriction exists and what alternatives actually work for your household.

Understanding the Individual Account Requirement

A Roth IRA operates as an individual retirement account—meaning it must be held in one person’s name and managed by that specific person. This differs fundamentally from other marital assets like homes or investment accounts, where couples commonly establish joint ownership.

The reasoning is straightforward: the IRS uses individual ownership to track contribution limits and tax implications. Each person’s contributions are monitored separately against their own earnings history. This structure prevents couples from exceeding aggregate contribution limits or claiming unearned income contributions improperly.

How Your Household Income Actually Impacts Both Spouses

While you can’t establish a joint IRA account, your marital status and combined income directly influence what each spouse can contribute. This is where things get complicated for dual-income households.

The Income Threshold Problem

In 2023, single filers earning below $138,000 can contribute the standard $6,500 annually to a Roth IRA (or $7,500 if aged 50 or older). Married couples filing jointly enjoy a higher threshold—up to $218,000 with full contribution rights. However, this advantage disappears entirely at $228,000 in combined household income.

Consider this scenario: if one spouse earns $50,000 and the other brings in $210,000, choosing to file jointly means neither spouse can contribute to a Roth IRA that year. That $228,000 threshold represents the ceiling for any contributions whatsoever. A 4% difference in household earnings is literally the gap between maximizing Roth contributions and losing access completely.

The Contribution Limits Mechanics

Each spouse in a married household gets their own contribution limit, but it’s determined by the total household income reported on a joint tax return. This creates an all-or-nothing scenario rather than proportional limits. Unlike traditional accounts where high earners might contribute more, Roth IRA rules apply the same ceiling to everyone in that income bracket.

For couples below the income cap, the advantage is real: both spouses can each contribute $6,500 (or $7,500 if over 50). But the moment combined income exceeds the threshold, both lose eligibility entirely, regardless of individual earnings.

Practical Alternatives to a Joint IRA Account

Since you cannot legally establish a joint IRA account, here are the strategies that actually provide shared benefits:

Designate Each Other as Beneficiaries

This is the simplest solution for most couples. You maintain separate Roth IRA accounts in each person’s name, but name your spouse as the designated beneficiary. While you’re both alive, you each manage your own account independently. If one spouse passes away, the surviving partner becomes the legal owner and can continue managing the account according to their own needs.

This arrangement achieves the primary goal couples seek from a joint account: ensuring marital assets stay protected and accessible to the surviving spouse.

Open a Spousal IRA

Single-earner households face a unique problem: one spouse may lack earned income to establish a Roth IRA independently. Without this, you’re limited to funding only one account rather than maximizing both contribution allowances.

The spousal IRA solves this. It allows couples filing jointly to establish a Roth IRA in the name of a spouse with little or no earned income, as long as the working spouse has sufficient earned income to cover both contributions. The combined contributions across both traditional and Roth IRAs cannot exceed the couple’s claimed household income, but this rule is easily satisfied in most cases.

This strategy doubles your household’s annual retirement savings capacity while respecting IRS ownership requirements.

Tax Filing Status Matters More Than You Think

Your choice to file taxes jointly versus separately significantly impacts Roth IRA eligibility. For most married couples, filing jointly provides higher income thresholds and allows spousal IRA contributions—making it the optimal choice for retirement planning.

Filing separately would trigger much lower contribution limits for each individual, essentially eliminating the Roth IRA strategy for most couples. The incentive structure built into the tax code clearly favors joint filing for retirement account purposes.

The Bottom Line on Joint Ownership

You cannot establish a joint IRA account, but this constraint doesn’t limit your ability to build shared retirement security. By designating beneficiaries and leveraging spousal IRA options, you achieve the practical benefits of joint planning while complying with IRS structure requirements. The key is understanding that retirement accounts operate under different ownership rules than other assets you might hold jointly—and planning accordingly.