Spousal IRA Question

Submitted by Michael Ciraulo on Tue, 2018-01-23 22:09

I’m confused about Spousal IRAs and Modified Adjusted Gross Income (MAGI) limits and hoping someone here can answer this.

I work, have a retirement plan and my MAGI is $138,951. My wife is a stay at home mom who doesn’t work outside the house. I’d like to contribute $6.500 to a traditional IRA for her in the hopes of lowering our 2017 taxes (we file jointly).

How does my MAGI of $138,951 affect her IRA? Will we see any discount on our taxes or is my MAGI too high?

Thanks in advance. 🙂



Submitted by Alan - IRA critic on Tue, 2018-01-23 22:20

SInce SHE is not covered by a plan at work, even though you are, the MAGI limit for HER to take the TIRA deduction does not start phaseout until 186k. With this situation and your MAGI of 139k, a deductible TIRA contribution for her and a 6500 Roth contribution for you is the best combination. You do not qualify for a deduction but do qualify for a Roth contribution.

Submitted by Michael Ciraulo on Tue, 2018-01-23 22:26

Thanks for clearing that up.  I really appreciate it. 🙂

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