What happens if a spouse dies during the year and you want to make an IRA contribution?
Common Question: Can I make an IRA contribution for my spouse if they died during the year?
Answer: No. IRA contributions cannot be made after the IRA owner’s death. The spousal IRA rules allow one spouse’s compensation to support the other spouse’s IRA contribution only when the spouse receiving the contribution is alive and owns the IRA.
Explanation
When a spouse dies during the year, a common question arises: Can you make an IRA contribution for a deceased spouse for that year?
This question often comes up when the surviving spouse plans to file a married filing jointly tax return for the year of death and has sufficient compensation to support IRA contributions.
Some people assume the spousal IRA rules allow a contribution to still be made for the deceased spouse. However, those rules apply only when the spouse receiving the contribution is alive and owns the IRA.
An important rule is often overlooked:
An IRA contribution cannot be made after the IRA owner’s death.
IRA Contributions Must Be for a Living IRA Owner
The purpose of an IRA contribution is to fund the retirement savings of the IRA owner. Once an individual has died, the account can no longer serve that retirement purpose.
The IRS addressed this issue in Private Letter Ruling 8439066, concluding that contributions made to an IRA after the IRA owner’s death were not eligible contributions. The IRS reasoned that the individual must be alive and eligible to make a contribution in order for the contribution to be valid.
While private letter rulings apply only to the taxpayer who requested them, they provide insight into the IRS’s interpretation of the rules.
The Spousal IRA Rule Does Not Change This Result
Confusion sometimes arises because of the spousal IRA contribution rule.
Under that rule, if a married couple files a joint tax return, one spouse’s compensation may be used to support an IRA contribution for the other spouse who has little or no compensation.
However, this rule applies only when the spouse receiving the contribution is alive and owns the IRA. It does not permit contributions to be made for a spouse who has already passed away.
Therefore, even if the surviving spouse:
- Files married filing jointly for the year of death, and
- Has sufficient compensation to support two IRA contributions,
a contribution still cannot be made to the deceased spouse’s IRA.
Another Practical Issue: The IRA May No Longer Exist
In many cases, the deceased spouse’s IRA has already been closed or transferred to beneficiaries as part of the post-death administration process.
Even if the account had not yet been closed, another practical issue remains. Opening or maintaining an IRA requires the authorization of the IRA owner. Once the owner has died, the individual can no longer authorize the establishment or funding of an IRA.
What the Surviving Spouse Can Still Do
The surviving spouse may still make his or her own IRA contribution for the year of death, provided that the applicable eligibility requirements are met, including having sufficient eligible compensation for the year.
For example, for 2025, an individual age 50 or older may contribute up to $8,000 to an IRA.
Related Questions
Can you contribute to an IRA after someone dies?
No. IRA contributions must be made while the IRA owner is alive. Contributions attempted after death are not eligible contributions.
If my spouse dies during the year, can I still make my own IRA contribution?
Yes. The surviving spouse may still make his or her own IRA contribution for the year, provided the eligibility requirements are met, including having sufficient eligible compensation.
Key Takeaway
When a spouse dies during the year:
- IRA contributions cannot be made after the individual’s death.
• The spousal IRA rules do not override this limitation.
• The surviving spouse may still make his or her own IRA contribution, if the eligibility requirements are met.
Understanding this rule can help prevent ineligible contributions, which could otherwise create correction and tax reporting issues later.
Because IRA contribution eligibility can depend on several factors, individuals should confirm the rules with their tax professional before making a contribution.
IRS Authority: Private Letter Ruling 8439066 (IRS conclusion that IRA contributions made after the IRA owner’s death are not eligible contributions). Not official guidance.
Denise Appleby, known as “The IRA Whisperer,” is a nationally recognized expert on IRA rules and retirement distribution planning. Through her consulting and educational work, she helps advisors and financial institutions navigate complex retirement account rules.
Disclaimer:This article is for informational and educational purposes only and should not be construed as tax, legal, or financial advice. Individuals should consult their own tax advisor, attorney, or financial professional regarding their specific situation.