IRA deduction question
Husband and wife both have businesses. Husband is an active participant in a 401K plan. Spouse is not in a plan and has sufficient earned income for a full IRA contribution. They file jointly. Can the wife deduct her IRA contribution? This is not a spousal IRA question.
Permalink Submitted by Alan Spross on Thu, 2012-10-11 18:04
The answer depends on their modified AGI (MAGI). Under 173k she can deduct the contribution, 173-183k is the phaseout range, and over 183k she cannot deduct it.
This would be true whether she is working or making a spousal contribution.
Permalink Submitted by Burt Moss on Thu, 2012-10-11 18:09
Thank you