Robinhood does not offer a Spousal IRA account type

Robinhood's retirement account options are limited to Traditional IRAs and Roth IRAs opened in a single person's name. The platform does not provide a Spousal IRA as a separate account product. If you are married and want to open a retirement account for a non-working or lower-earning spouse, you cannot do so directly through Robinhood.

A Spousal IRA is a real account type that exists at most major brokerages — it allows a working spouse to contribute to a retirement account in their non-working spouse's name, subject to IRS rules. Robinhood simply has not built this feature into their platform, even though the IRS permits it.

Key Takeaways

  • Robinhood offers Traditional and Roth IRAs but not Spousal IRAs, so you cannot open a retirement account for a spouse through Robinhood.
  • A Spousal IRA is a legitimate account type that allows a working spouse to fund retirement savings for a non-working spouse, subject to income limits set by the IRS.
  • If you need a Spousal IRA, you will need to open one at a different brokerage such as Fidelity, Vanguard, Charles Schwab, or your bank.
  • You can still open a regular Roth or Traditional IRA for yourself at Robinhood while opening a Spousal IRA elsewhere for your spouse.

How a Spousal IRA works and who can use one

A Spousal IRA is an account opened in one spouse's name but funded by the other spouse's income. The IRS allows this when one spouse has little or no earned income for the year. For example, if you work and earn $80,000 and your spouse stays home or earns only $5,000, you can contribute to a Spousal IRA in your spouse's name using your own income.

The contribution limit for a Spousal IRA is the same as a regular IRA — $7,000 per year for people under 50, or $8,000 if you are 50 or older (these limits apply for 2024 and may change). The account itself works exactly like a regular IRA: it grows tax-deferred in a Traditional Spousal IRA, or tax-free in a Roth Spousal IRA. Your spouse controls the account and makes withdrawal decisions once they reach retirement age.

The main requirement is that the working spouse must have earned income at least equal to the total contributions being made to both their own IRA and their spouse's IRA. If you earn $10,000 that year, you cannot contribute $7,000 to your own IRA and $7,000 to a Spousal IRA — your total contributions cannot exceed your earned income.

Why Robinhood does not offer this account type

Robinhood's platform is designed for simplicity and speed, which means it offers fewer account types than traditional brokerages. The company has chosen to focus on standard individual retirement accounts rather than specialized variations like Spousal IRAs, SEP IRAs, or Solo 401(k)s.

This is a business decision, not a legal barrier. Robinhood could add Spousal IRA support if it chose to, but the feature does not appear to be a priority for the company. Larger brokerages like Fidelity, Vanguard, and Charles Schwab all offer Spousal IRAs because they serve a wider range of account holders and have built out more complex account infrastructure.

Where to open a Spousal IRA instead

Most major brokerages and banks offer Spousal IRAs. You have several options:

  • Fidelity — offers both Traditional and Roth Spousal IRAs with no account minimum.
  • Vanguard — offers Spousal IRAs with low minimums and a wide range of investment options.
  • Charles Schwab — offers Spousal IRAs with no minimum balance requirement.
  • Your bank — most banks offer IRAs, including Spousal IRAs, though investment options may be limited.
  • Other brokerages — E*TRADE, TD Ameritrade, and most regional brokerages also support Spousal IRAs.

Opening a Spousal IRA at one of these firms takes about 10 to 15 minutes online. You will need to provide your spouse's Social Security number, date of birth, and address. The account will be opened in your spouse's name, and you will fund it from your own bank account.

Can you split your retirement savings between Robinhood and another brokerage?

Yes. You can open a Roth IRA or Traditional IRA at Robinhood for yourself and a Spousal IRA at Fidelity or another brokerage for your spouse. There is no rule against holding IRAs at multiple institutions.

The only limit that matters is the annual contribution cap. If you contribute $5,000 to a Roth IRA at Robinhood and $2,000 to a Traditional IRA at Fidelity, your total contributions for the year are $7,000 — which is within the limit. You cannot exceed the annual maximum across all your IRAs combined, regardless of where they are held.

Keep track of your total contributions across all accounts. If you go over the limit, the IRS charges a 6% penalty tax on the excess amount each year it remains in the account. Most brokerages will not stop you from over-contributing, so the responsibility falls on you to track your own total.

Tax implications of a Spousal IRA

The tax treatment of a Spousal IRA depends on which type you open. A Traditional Spousal IRA may offer a tax deduction for the contribution in the year it is made, but only if your household income is below certain thresholds set by the IRS. If your income is too high, the contribution is not deductible, though the account still grows tax-deferred.

A Roth Spousal IRA does not offer a deduction, but the account grows tax-free and withdrawals in retirement are tax-free. Roth contributions are subject to income limits — if your household income exceeds the limit, you cannot contribute to a Roth IRA at all, whether it is a regular Roth or a Spousal Roth.

The income limits change each year. For 2024, the Roth IRA income phase-out for married couples filing jointly begins at $230,000 and ends at $240,000, but these numbers shift annually. Check the IRS website or your brokerage's website for the current year's limits before you open an account.

Frequently Asked Questions

Can I open a Spousal IRA at Robinhood in the future?

Robinhood has not announced plans to add Spousal IRAs to its platform. If this changes, the company would announce it on its website or in account updates. For now, you will need to use a different brokerage if you want a Spousal IRA.

What if my spouse has no income at all?

A Spousal IRA is designed exactly for this situation. As long as you have earned income and file taxes jointly with your spouse, you can open and fund a Spousal IRA in their name. The account works the same way as any other IRA.

Do I need to open the Spousal IRA in my name or my spouse's name?

The Spousal IRA must be opened in your spouse's name, even though you are funding it. Your spouse is the account owner and beneficiary. You simply provide the money to fund it.

Can I contribute to both a regular IRA and a Spousal IRA in the same year?

Yes, but your total contributions to both accounts cannot exceed your earned income for the year. If you earn $15,000, you could contribute $7,000 to your own IRA and $8,000 to a Spousal IRA, for a total of $15,000.

What happens if I divorce after opening a Spousal IRA?

The account remains in your ex-spouse's name and belongs to them. You cannot reclaim the money you contributed. If you have questions about dividing retirement accounts in a divorce, speak with a family law attorney in your state, as rules vary by location.