Non-Deductible Traditional IRA Contributions

Hello

Husband covered by employer plan in 2014. Wife working but not covered by an employer plan in 2014. Joint Annual income exceeds limits for deducting Trad. IRA and Roth IRA Contributions. Can husband and wife contribute to a Trad. IRA and not deduct it?



There are no income limits for making non deductible TIRA contributions. Perhaps one or both spouses would benefit from doing a “back door Roth”. The conversion of non deductible TIRA contributions will be mostly taxable if the spouse has other non Roth IRA balances, but this applies separately per spouse. Perhaps one of them does not have these other IRA balances and could convert the non deductible contribution to a Roth tax free. If a spouse does have other TIRA balances, the conversion can still be tax free if the IRA pre tax balance is rolled into their employer plan before year end. That would leave only the non deductible contribution in the TIRA and that could be converted tax free.



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