Robinhood does not offer any type of IRA, including a Spousal IRA

Robinhood is a brokerage platform for buying and selling stocks, exchange-traded funds (ETFs), options, and cryptocurrencies. It does not provide retirement accounts of any kind. If you are looking to open a Spousal IRA — an Individual Retirement Account that lets a non-working spouse contribute to retirement savings — you will need to open it through a different financial institution.

A Spousal IRA is a regular IRA (either Traditional or Roth) opened in the name of a spouse who has little or no earned income for the year. The working spouse's income is what allows the contribution to happen. Robinhood's platform straightforward does not support IRA accounts, so this option is not available there.

Key Takeaways

  • Robinhood is a brokerage for individual taxable investment accounts only and does not offer IRAs of any kind.
  • A Spousal IRA is a regular IRA (Traditional or Roth) opened in a non-working spouse's name, funded by the working spouse's income.
  • You can open a Spousal IRA through banks, credit unions, online brokerages, and investment firms that do offer retirement accounts.
  • The IRS sets annual contribution limits for Spousal IRAs, and both spouses must file a joint tax return to use this strategy.

Where to open a Spousal IRA instead

Many financial institutions offer Spousal IRAs. Common options include traditional banks (like Chase or Bank of America), online brokerages (like Fidelity, Charles Schwab, or E*TRADE), credit unions, and investment firms. Each has different fees, investment choices, and account minimums, so it is worth comparing a few before you decide.

If you already use Robinhood for taxable investing and want to keep your retirement savings separate, you could open a Spousal IRA at a different institution. Some people do this intentionally — they use Robinhood for short-term trading and a traditional brokerage for long-term retirement accounts.

How a Spousal IRA works

A Spousal IRA is useful when one spouse works and earns income while the other does not (or earns very little). Without this option, the non-working spouse would have no way to save for retirement in a tax-advantaged account, because IRA contributions normally require earned income.

The working spouse's income is what determines how much can be contributed. For 2024, you can contribute up to $7,000 per person per year to a Spousal IRA (or $8,000 if you are age 50 or older). The contribution can be split between the two accounts however you choose — for example, $5,000 to one spouse's IRA and $2,000 to the other's — as long as the total does not exceed the working spouse's earned income for the year.

Both spouses must file a joint tax return to use this strategy. You cannot claim a Spousal IRA contribution if you file separately.

Traditional IRA vs. Roth IRA for a spouse

When you open a Spousal IRA, you choose whether it is a Traditional IRA or a Roth IRA. The choice affects how the money is taxed now and in retirement.

A Traditional IRA contribution may be tax-deductible in the year you make it (depending on your income and whether either spouse has a workplace retirement plan). The money grows tax-free, but you pay income tax on withdrawals in retirement. A Roth IRA contribution is made with after-tax dollars, so you do not get a deduction now, but the money grows tax-free and withdrawals in retirement are tax-free.

The right choice depends on your current tax bracket, whether you expect to be in a higher or lower bracket in retirement, and your personal financial situation. A tax professional can help you decide which makes more sense for your household.

Income limits and other rules

Spousal IRAs have the same income limits as regular IRAs. For a Roth IRA, your ability to contribute phases out if your household income is above a certain level. For 2024, the phase-out range for married couples filing jointly starts at $230,000 of modified adjusted gross income (MAGI). These limits change each year.

If your income exceeds the Roth limit, you can still contribute to a Traditional IRA, though the deduction may be limited if either spouse has access to a workplace retirement plan. There is no income limit for Traditional IRA contributions themselves, only for the deduction.

You can also have both a Spousal IRA and a workplace retirement plan (like a 401(k)) at the same time. The contribution limits are separate, so you could max out both if your income allows.

Frequently Asked Questions

Can I open a Spousal IRA if my spouse has some income?

Yes. A Spousal IRA is useful as long as one spouse's income is less than the other's. For example, if one spouse earns $80,000 and the other earns $5,000, you can still use the higher earner's income to fund a Spousal IRA for the lower earner. The contribution limit is based on the working spouse's total earned income, not the non-working spouse's.

What happens to a Spousal IRA if we divorce?

After a divorce, each spouse keeps their own IRA. The account remains in the name of whoever owns it. If you transfer funds as part of a divorce settlement, that transfer is not taxed as long as it is done through a direct trustee-to-trustee transfer or as part of a may have access to domestic relations order (QDRO). Consult a tax professional or attorney about the specifics of your situation.

Can I contribute to a Spousal IRA if I am self-employed?

Yes. Self-employment income counts as earned income for IRA contribution purposes. If you are self-employed and your spouse does not work, you can use your net self-employment income to fund a Spousal IRA for your spouse. You will report this on your joint tax return.

Do I have to contribute the same amount to both spouses' IRAs?

No. You can split the contribution however you want between the two accounts, as long as the total does not exceed the working spouse's earned income and each account does not exceed the annual per-person limit ($7,000 for 2024, or $8,000 if age 50+).