What condition allows contributions to a Spousal IRA?

For contributions to a Spousal IRA, the critical condition is that the employed spouse must have enough earned income to support the contributions to both their own IRA and their spouse's IRA. This allows the non-working or stay-at-home spouse to open and contribute to their own IRA based on the earned income of the working spouse.

The limit for contributions to a Spousal IRA is tied to the combined income of the working spouse, and as long as that income meets the requirements set by the IRS, the stay-at-home spouse can contribute to their IRA. This provision is designed to promote retirement savings for couples, even when one spouse does not have earned income themselves.

In contrast, other options do not align with the rules governing Spousal IRAs. For instance, being over 65 does not directly influence a Spousal IRA, and contributions are not limited by both spouses needing to work full-time or by age limits beyond the overall contribution limits set by the IRS. Overall, this supports the overall goal of encouraging retirement savings regardless of individual income levels when appropriately supported by a partner's earnings.