My wife is a stay-at-home mom. I only earn $60,000/year, but I have a 401(k) and want to contribute to her future. What’s the best way to do this without her going back to work?

How to save for retirement for a stay-at-home spouse

Stay-at-home spouses don't have a traditional workplace 401(k) to invest in, but a spousal IRA (Individual Retirement Account) can be a good alternative. This specific type of IRA allows a working spouse to contribute into an account that belongs to a non-working spouse, who often has little to no income.

In 2025, Americans can contribute up to $7,000 into an IRA, while those over 50 years old are permitted to make an additional $1,000 catch-up contribution. This limit is applied to each individual IRA, so in our loving husband’s case, he could contribute $7,000 into his wife's spousal IRA while also investing $7k into his own, if he has one. His workplace 401(k) contributions won't affect his wife’s eligibility for a spousal IRA.

It's important to note, though, that while the husband may want to contribute money into accounts like this for his wife, he also should make sure he doesn't leave free money on the table. This means he should be investing enough to earn his full 401(k) matching contribution with his employer before diverting money into his wife's retirement accounts.

It's also worth noting that his wife's Social Security benefits will be pretty low, as she likely won't get much from her own work history and will need to rely on spousal benefits, which max out at 50% at full retirement age.

The husband may also want to look into a life insurance policy. While this husband is likely focused on living out his golden years along with his wife, he should also consider the unfortunate potential for his wife to live in retirement as a widow. It’s a grim prospect to consider, but if this husband were to pass away, a life insurance policy could leave his wife with a substantial sum that could greatly help her navigate through her retirement.

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Making ends meet as a one-income household

Investing in a 401(k) and a spousal IRA can be tough with a $60,000 annual income, but there are ways for this married couple to make this money stretch, even without the wife bringing in any income.

One of the best approaches is to keep expenses low, which means avoiding big purchases like houses or expensive cars. Cancelling pricey subscriptions, adopting good habits to reduce utility bills and relying on public transportation are all things they can do to keep spending down as well.

This couple should also try to live on a budget and, when possible, look for ways to reduce the cost of running their household. Cooking at home instead of dining out and cutting coupons, or planning meals around grocery store sales, are good examples of ways to save around the house.

Sacrificing a few extras to help his wife secure a comfortable retirement is well worth this husband’s effort, and the tips mentioned above are good ways to get started.