Hi,
I am 61 years old, retired and receiving a pension from Federal Government (not social security benefit yet). My husband is also 61 years old, is still working and his salary is about $120,000, but he is NOT covered by a retirement plan at work. My question is (i) Can we use the Kay Bailey Hutchison Spousal IRA even though I am receiving a pension from Federal Government?
Since my husband is not covered by a retirement plan at his work, I know we can contribute up to $7000 each for traditional IRA, but (ii) Can we take full deduction of $14,000 even though I am receiving a pension from Federal Government?