What Changes for Your IRA and 401(k) When You Get Married

Getting married is a major life milestone that brings new opportunities—and new responsibilities—for your finances. If you’re newly married or planning to tie the knot, it’s important to understand how your IRA and 401(k) accounts are affected. From changes in contribution limits and tax-filing status to updating beneficiaries, this guide explains what every couple needs to know to avoid costly mistakes and make the most of their retirement savings.

When Does Your Marriage Take Effect?

For federal tax purposes, the IRS considers you to be married for the entire year, no matter when during the year you marry. For example, if you exchange vows on Dec. 31, your tax-filing status considers you married for that entire year. You will file either married filing jointly or married filing separately, depending on your preference.

Important: Remember to tell your tax preparer about your change in marital status. It affects not only your filing status but may also affect your eligibility for credits, deductions, and Roth IRA contributions.

Impact on Your Roth IRA Contribution

Marriage can change your eligibility to contribute to a Roth IRA.

Assume that you made an eligible contribution to a Roth IRA on Jan. 1 when you were single and your modified adjusted gross income, or MAGI, was $50,000. If you get married by Dec. 31 and your joint income is $500,000, you no longer qualify for that contribution because the cap on MAGI for a Roth IRA contribution is $246,000.

What to do:

• Ask your tax advisor to check your MAGI. If your MAGI exceeds the eligibility amount, you must remove or recharacterize any excess contribution to avoid a 6% annual excise tax on the excess. This correction must be completed by your tax filing deadline, including extensions, to avoid the excise tax.
• If your joint income is too high for a direct Roth contribution, ask your tax advisor about a backdoor Roth contribution.

For 2025, the phaseout ranges are:

• Married filing jointly or qualifying surviving spouse: $236,000–$246,000.
• Single, head of household, or married filing separately (if you did not live with your spouse at all in 2025): $150,000–$165,000.
• Married filing separately (if you lived with your spouse at any time in 2025): $0–$10,000.

These amounts are indexed for inflation and may increase in future years.

Example: Chris earns $140,000, and Dana earns $120,000. As single filers, each could fully contribute to a Roth IRA. Once they marry, their combined MAGI of $260,000 exceeds the $246,000 cutoff for joint filers in 2025. They must withdraw or recharacterize any Roth contributions to avoid penalties.

Impact on Deducting Your Traditional IRA Contribution

If neither spouse is covered by an employer retirement plan, you can deduct your full IRA contribution regardless of income. If one or both spouses are covered, the rules change.

For 2025, the deduction phases out as follows:

• Married filing jointly or qualifying surviving spouse: $126,000–$146,000 (if you are covered by an employer plan).
• Single or head of household: $79,000–$89,000 (if covered by a plan).
• Married filing separately: $0–$10,000 (if covered by a plan).
• Married filing jointly (you are not covered, but your spouse is): $236,000–$246,000.

At or above the top of each range, no deduction is allowed.

Example: Chris is covered by a 401(k) at work, and Dana is not. Their joint MAGI is $140,000.

• Chris’ deduction: Because he is covered by a plan and their income falls within the $126,000–$146,000 phaseout range, Chris can deduct only part of his $7,000 IRA contribution (or $8,000 if age 50 or older).
• Dana’s deduction: Because she is not covered by a plan, Dana can deduct her full $7,000 contribution (or $8,000 if age 50 or older) since their income is well below the $236,000–$246,000 phaseout range that applies to a noncovered spouse.

Spousal IRA Contribution

If you do not have earned income, you cannot contribute to a traditional or Roth IRA on your own. However, if you are married and file a joint return, your spouse’s income counts as compensation for your IRA contribution.

Your IRA must be established and maintained under your name and Social Security number. Joint IRAs are not permitted. Even if your spouse provides the funds from their income, the IRA belongs to you, and you have full control over investments, withdrawals, and beneficiary designations.

Example: Dana takes time off work to finish graduate school, so she has no earned income. Chris earns $140,000. By filing jointly, Chris’s income allows them both to contribute $7,000 each to their respective IRAs for 2025, even though Dana did not earn wages that year.

Beneficiaries and Employer Plans

Marriage also changes who can inherit your retirement savings.

• Employer plans (401(k), profit-sharing, pension plans, and ERISA 403(b)): Your spouse is automatically your beneficiary unless they formally consent, witnessed by a plan representative or notarized, to allow someone else. Without consent, any designation other than 100% spouse is invalid. Rare exceptions apply for couples married less than one year.
• IRAs and non-ERISA 403(b): Federal law generally allows you to name anyone as a beneficiary. IRAs are not governed by ERISA spousal rules. However, community property or similar state laws can give your spouse rights to some portion of the account unless they waive those rights. Check your state’s laws, as they may differ from federal rules. Consult with an attorney if needed.

Action step: Always update your beneficiary designations after marriage. If you forget, disputes can arise. For example, if your mother remains listed on your beneficiary form but the law gives your 401(k) to your spouse, litigation could follow. Completing new forms with spousal consent avoids this conflict.

Name Changes and Administrative Processes

If you change your name after marriage, notify the Social Security Administration first. Then update your financial institutions. Be clear that you are changing only your name.

Errors sometimes occur. In one case, a financial institution mistakenly removed the word Roth from the account title during a name change. The owner thought they had a Roth IRA but actually made traditional contributions and rollovers, which created costly problems to correct.

Beyond Retirement Accounts

Marriage affects more than your IRA or 401(k). Other key areas include:

• Tax withholding: Update your Form W-4 with your employer to reflect your new filing status. Your tax preparer can recommend whether you should adjust withholding to avoid surprises at tax time.
• Insurance and estate plan: Review life insurance and all beneficiary designations. Consult with your estate planning attorney about updating or creating a will and a durable power of attorney.
• Health insurance: Evaluate whether adding a spouse to your employer plan makes sense compared with keeping separate coverage.

Marrying Your Retirement Planning

Marriage often brings together two financial lives. Your retirement accounts should be part of your financial and retirement planning, since they are likely to fund retirement income for both spouses. Your tax-filing status, IRA contribution rules, and employer plan beneficiary rights all shift once you are married. Aligning goals, contributions, and investment strategies early can help strengthen your long-term financial plan.

Add to that the practical tasks of telling your tax preparer, checking state laws, updating beneficiaries, and handling name changes carefully. You have a clear financial to-do list for your first year as newlyweds. Taking these steps will help you start your marriage on solid financial ground, avoid costly missteps, and make the most of the new opportunities that come with your changed status.

Key Takeaways

• The IRS considers you married for the entire year if you are married on Dec. 31, even if you wed on the last day of the year. Tell your tax preparer about your change in marital status.
• Your eligibility to contribute to a Roth IRA or deduct a traditional IRA contribution can change once you are married, depending on your joint income and plan coverage.
• A spousal IRA allows a nonworking spouse to make IRA contributions using the working spouse’s income, but each account must be in the individual’s own name.
• In employer plans, your spouse is generally the automatic beneficiary unless they provide written, notarized consent. State law may also affect IRA beneficiary rights.
• If you change your name, be certain that only the name is changed. Errors in account titles can lead to costly tax issues.
• Marriage also affects tax withholding, health insurance, life insurance, and estate planning. Review and update all documents to reflect your new status.

Action Steps

• Tell your tax preparer about your marriage.
• Confirm IRA limits and phaseouts for your filing status.
• If over the Roth limit, recharacterize or remove excess contributions by your filing deadline plus extensions.
• Update beneficiaries for each account; obtain spousal consent for ERISA plans if naming someone else as primary beneficiary.
• Check community property rules before naming a nonspouse as your IRA beneficiary.
• Update the Social Security Administration and your Form W-4 if your name or withholding changes.