Deductible contributions to IRA for non working spouse
Married couple both under 50 in 2018 with 3 children each under 12 yrs old. Husband makes $130,000 salary (after deducting 401k employee contribution) and participates in a 401k plan at work, no other income. Wife does not work
1. Seems if wife contributes $ 5500 to a deductible traditional IRA before 4/1/19 and designates it as
a 2018 contribution it would reduce their income taxes in 2018.
2. However if husband contributes to a deductible traditional IRA for 2018 before 4/1/19 it will not be deductible. Why?
Is it because husband already participates in 401k at work?
3. If 2 above is correct, then the best tax reduction plan is for the wife to contribute $ 5,500 to a deductible IRA for 2018?
Permalink Submitted by Alan - IRA critic on Tue, 2019-01-22 01:53
1) That is correct.2) Also correct, because he participates in the 401k plan.3) Wife could make the deductible TIRA spousal contribution using husband’s income. Husband could make a Roth IRA contribution if he wants to.