deductible IRA’s for married couples filing seperately
Can a married couple filing seperately who are not active participants in a ESRP(employer sponsored retirement plan) open deductible IRA’s?
Can a married couple filing seperately who are not active participants in a ESRP(employer sponsored retirement plan) open deductible IRA’s?
Permalink Submitted by Alan Spross on Mon, 2009-01-26 20:02
Yes, but be sure that neither of them is a participant, because if even one spouse is deemed a participant, the income limit drops to 10,000.
If an employer offers a DB plan, the W2 will show that spouse as a participant, so if any doubt wait until the W2s are issued for a 2008 contribution.
Note that the 10,000 modified AGI limit also applies to a Roth contribution if filing separately.
But also note that if the spouses can show that they never lived together during the year, they are treated as single with respect to the income limits.
Permalink Submitted by Michael Hassett on Tue, 2009-01-27 16:36
Thanks Alan your a life saver and I appreciate it. Michael