Which of the following statements is true regarding IRA contributions for married couples?

The correct answer regarding IRA contributions for married couples is that both spouses must have income to contribute. This is aligned with IRS regulations, which state that in order to make contributions to an Individual Retirement Account (IRA), a spouse needs to have earned income. This income can come from wages, salaries, or self-employed earnings, but both partners benefit from being able to contribute based on their joint income and the working partner's earnings.

It's important to note that, under certain conditions, one spouse can still contribute to an IRA even if the other spouse does not have earned income, allowing non-working spouses to still benefit from tax-advantaged savings. However, both must be eligible in terms of income and contribution limits.

Generally, the total contribution limit is based on individual income, but the correct answer emphasizes the necessity of earned income for contributions, without implying a limit or the ability to contribute for inactive spouses without income, or framing it around joint filings and contribution limits, which could misrepresent the actual guidelines. Understanding this helps individuals plan their retirement strategies more effectively, as it highlights the importance of having income when considering contributions to an IRA.